AdCare Health Systems, Inc. has closed on the last of its three newly acquired skilled nursing facilities in Georgia. The facilities, located in Dublin, Marietta, and College Park, Ga., were purchased for a total of $18 million and are a part of the company’s merger and acquisition program begun in 2009.
“The acquisition of College Park nursing facility is among the some 20 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. “This latest facility expands our presence in Georgia, joining the 12 facilities we already operate in the state. The addition of this Georgia facility is in line with our expansion into the Southeast.”
AdCare Health Systems says revenue from the facilities’ combined 335 beds will immediately add to their earnings with about $16.4 million annually; this will bring the company’s total revenue run-rate estimate to more than $175 million, a 229% increase from 2010. The corporation says this will represent a more than 555% increase from 2009’s revenues when it began its M&A campaign.
The corporation states that these facilities have initially been financed through bank loans, but are expected to be refinanced with a loan guaranteed by the USDA for the Dublin facility and by the Small Business Administration for the other two; Brogdon says the corporation is also considering other “attractive new opportunities” around its home base in the Midwest.
Written by Alyssa Gerace