AdCare Health Systems said it has signed a definitive agreement to purchase a skilled nursing and assisted living community in Ohio for $13.5 million.
The community has 193 beds and generates an estimated $12 million in gross annualized revenue said AdCare in a statement.
Expected to close before the end of the year, AdCare plans to finance the acquisition of the facility with a 30 year, fixed rate, tax exempt bond issuance, and finance the skilled nursing facility with a traditional bank loan. With this transaction, AdCare has put 44 facilities under contract since its M&A campaign began in the fall of 2009, representing more than 4,890 beds.
Combining AdCare’s current annualized run-rate with transactions currently in the process of closing, the company’s estimated annualized revenue run-rate is expected to exceed $280 million. This would represent an increase of more than 426% over the company’s revenues in 2010, and an increase of more than 949% over revenues in 2009 when the current M&A campaign began.
“Since establishing new operations in Alabama, Georgia and North Carolina, we’ve now made our first acquisition in the state of our origins,” said Chris Brogdon, AdCare’s vice chairman and chief acquisitions officer. “These new facilities will leverage the professional support staff we’ve long maintained in Ohio, as well as enhance our overall economies of scale.”
Brogdon said the company is continuing to look at opportunities in the Midwest and South. “With our M&A program and the integration of new facilities remaining our primary corporate focus going forward.”