HCP (NYSE:HCP) said it closed on the acquisition of 334 post-acute, skilled nursing and assisted living facilities of HCR ManorCare for $6.1 billion in cash on Friday. As part of the deal, HCP entered into a long term triple-net master lease where HCR ManorCare will continue to operate the facilities.
The company also paid $95 million for a 9.9% equity interest in HCR ManorCare at closing. Based in Toledo, OH, HCR is a provider of provider of short-term post-acute services and long-term care.
In March, HCP’s Vice President and Chief Financial Officer, Thomas M. Herzog, announced his resignation, effective May 15, 2011 to pursue new opportunities.
The acquisition will be a nice addition to its portfolio of investments which as of December 31, 2010, includes interests in 672 facilities among the following segments: 251 senior housing, 102 life science, 253 medical office, 45 post-acute/skilled nursing and 21 hospital; and (ii) $2.0 billion of mezzanine and other secured loans.