AdCare Health Systems, Inc. (NYSE:ADK) has announced the closing for the lease of three nursing homes under a 10-year term lease and have an aggregate of 280 beds between the three facilities. The closing of the three nursing homes, which was previously announced earlier this year, will generate approximately $15.5 million in new revenue for AdCare.
"This transaction is the third we’ve closed since we began our M&A campaign at the end of last year," said Chris Brogdon, AdCare’s vice chairman and chief acquisitions officer. "We expect all of these facilities to be significant cash generators for AdCare, especially as they come under our highly capable management and benefit from our larger economy of scale. As we work toward closing the currently pending transactions we’ve announced, including the lease of the remaining two nursing homes in Georgia, additional opportunities continue to emerge in the southern region of the U.S."