November’s M&A train keeps on rolling

There have been many big news stories so far since the start of November. Yes, outside of politics even. As many of you probably read in the latest issue of The SeniorCare Investor, we saw a resurgence of senior care and seniors housing transactions this month, after about a half a year of tepid M&A activity. We have to say that “tepid” is a relative term, but the reality is the average number of deals per month was 22.6 from June to October, compared with a 34.3 average in the second half of 2015 and a 30.4 average in the first five months of 2016. So far in November, we have already seen 18 transactions announced, and several of those have been big by 2016 standards, including two deals around $1 billion. And so it continues, with a $120 million acquisition of 12 skilled nursing facilities and one personal care home in Eastern Kentucky. Owned by a Kentucky-based operator, the portfolio totals 1,177 skilled nursing beds and 62 personal care beds. Built on average 22 years ago, the facilities were well maintained and well managed (with 93% occupancy and approximately $14 million in EBITDARM) by a management team that will remain in place. Rosemont Healthcare Group was the buyer, paying an above-average $96,850 per bed for the facilities. Watson McCollister of Senturian Senior Housing Brokerage represented the seller in the transaction.


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