AdCare Health Systems, Inc. (NYSE Amex: ADK) announced the closing of a previously announced acquisition of two skilled nursing facilities in Dublin and Marietta, Georgia, with the remaining third facility of this group located near Atlanta expected to close by end of May.
The three facilities have an aggregate of 335 beds generating $16.4 million in annualized revenues. The combined purchase price of the three facilities was $18 million and was financed through bank financing. The loans are expected to be refinanced with a loan guaranteed by the United States Department of Agriculture (USDA) on the Dublin facility and a Small Business Administration loan for the Marietta facility.
“The acquisition of these facilities are among the some 19 facilities we’ve purchased or leased since we began our M&A program in the fall of 2009,” said Chris Brogdon, AdCare’s vice chairman and chief acquisitions officer. “These latest facilities significantly expand our presence in Georgia, joining the 10 facilities we already operate in the state. In addition to these Georgia facilities, we have also announced the agreement to purchase four skilled nursing facilities in Arkansas and the lease of one skilled nursing facility in Missouri.”
