Several months after the deal was first announced, Diversicare Healthcare Services has now been acquired (through a merger) by DAC Acquisition LLC, a privately held Delaware limited liability company managed by Ephram Lahasky. Mr. Lahasky has significant affiliations with in excess of 100 owned and/or leased skilled nursing and similar facilities in over 20 states.
Per the deal, Diversicare’s stockholders will receive an amount of cash equal to $10.10 per share of Diversicare common stock, which represents a premium of approximately 256% from Diversicare’s closing share price of $2.84 on August 19, the last trading day prior to deal’s announcement. To support the acquisition, CIBC Bank USA acted as sole lender in closing a $100 million five-year term loan secured on 15 skilled nursing facilities in Kansas, Texas, Alabama and Tennessee totaling around 1,400 beds. With an effective age of 25 years, the facilities have historically been approximately 75% occupied with a 15% EBITDAR margin. CIBC also closed a $10 million revolving line of credit for working capital needs. Matthew Tyler and Neal Netzel handled the financing for the bank.
Brentwood Capital Advisors LLC acted as financial advisor, and Bass Berry & Sims PLC was legal counsel to Diversicare. Krieger and Prager LLP and Novack Burnbaum and Crystal LLC acted as counsel to DAC Acquisition.
Diversicare, which provides skilled nursing services across 61 facilities and 7,250 beds, becomes a private company but will continue to be managed by its current management team, including Jay McKnight, President and CEO, Becky Bodie, Executive Vice President and COO, and Kerry Massey, Executive Vice President and CFO.
