Ventas to buy 67 facilities run by Louisville's Senior Care - Business First of Louisville:

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Louisville-based Ventas (NYSE: VTR) will pay $649 million in cash and compant stock to buy the according to anews release. The facilities will be leasedx to subsidiariesof , a Louisville-based compan y formed last year to run the Reichmanns' long-term care portfoli o in the United States. Senior Care is led by Pat a veteran of the healtg careand long-term care industries. Mulloy once led Louisville-based Atria Communitie s Inc., now The Reichmanns, a prominenrt Canadian real estate family, have significant holdings in the United States and including IPCUS REIT. IPC's U.S. operationds also are based in Louisville.
The family'es long-term care portfolio includes 74 facilities in16 states. It also includesd two Louisville-based companies that are becoming part ofSeniof Care: The Elmcroft Group and United Rehagb LLC. United Rehab operates 17 skilled-nursing facilities and two rehabilitatioh hospitals, primarily in Kentucky. Elmcroft operates eight assisted-living communities located in the southeastern United As BusinessFirst , the Reichmann-familyg entities originally had planned to sell most of theitr long-term care properties through an initial publi offering on the Toronto Stocik Exchange.
It was not immediatelh clear how the deal with Ventas will affect that and Mulloy could not be reachedrfor comment. In the news release, Mulloy said "Senior Care will generats morethan $15 million in operating income by next year and be one of the largestt privately held long-term care and seniora housing enterprises in the The company, which combiner many of the Reichmann enterprises in this has nearly 6,000 employees and abou t 6,200 beds. "We are very pleased to begin our corporatw lifewith Ventas's strong endorsement, evidencedx by its $649 million investmenr in our business," Mulloy said in the release.
For Ventas, the deal means it will add about $50 million in annual rent payments througyhthe 15-year lease -- and two five-year the release said. The deal is expectedc to add about 4 cents per share to funds from operations in the first year afterd thedeal closes, the release Funds from operations, a commom measure of performance for real estate investment trusts, excludes depreciation, gains and losse on real estate sale and other items. Last Ventas reported funds from operationzof $200.1 million, or $2.09 per share on $333 Ventas also will continue its diversification, lessening its reliance on rent from its formed sister company, Louisville-based Kindred.
Followinv the purchase and lease arrangement withSenio Care, Kindred's leases will representy about 46 percent of Ventas's annual revenue, the release said. In 2005, Kindred paid $199.1 millionb in rent payments to Ventas, or about 52 percent of annual revenue for its225 facilities. "We are excited to announcew this acquisition, which exemplifies the continued execution of our strategic growth anddiversificatiom plan," Ventas CEO Debra A. Cafaro said in the release.
"Ihn one step, we are adding an important newtenant relationship, acquiring a diverse portfolio of assetw with a large component of privatse pay revenues, and continuing our commitment to strong internal growty from rental escalations," Cafark added.