The largest provider of skilled nursing in the country, Genesis HealthCare, increased its facility ownership to 23% of its inpatient sites with the acquisition of 24 skilled nursing facilities with 3,056 total beds for $240 million, or $78,500 per bed. The facilities, owned by Revera, Inc. and generating approximately $280 million in 2014 revenue, are located in New Jersey (8), Vermont (5), Washington (3), Connecticut (2), Massachusetts (2) and one each in Maryland, Virginia, New Hampshire and Rhode Island.
Under the agreement, Genesis will acquire the real estate of 20 of the 24 facilities, and will enter into long-term lease agreements with Health Care REIT for the remaining four. In the transaction, Genesis also acquired Premier Therapy, Revera’s contract rehabilitation business, meaning the price paid per bed attributable to the acquired skilled nursing facilities would be smaller than $78,500 per bed. To fund the acquisition, Genesis will obtain a bridge loan from HCN. The transaction is expected to be accretive to 2016 earnings.