Five Star Quality Care to acquire 100% of LTA Holdings Inc.

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Five Star Quality Care, Inc. will acquire 100% of the capital stock of LTA Holdings Inc. for $208 million, the company said. FVE expects to close the transaction during the fourth quarter of 2004.

FVE will acquire 47 senior living communities from LVA, a privately owned company formerly known as LifeTrust America Inc. The facilities maintain 2,636 independent and assisted living units located in the southeastern United States.

FVE will enter a $165 million sale lease-back transaction with Senior Housing Properties Trust (NYSE: SNH) for 35 of the acquired communities, and FVE will retain the remaining 12 communities, according to the terms of the negotiations. Cash on hand will fund the balance of the purchase price primarily by assuming HUD insured long-term mortgage debt and a lease for four communities from Health Care Property Investors, Inc.
No specific plans have been arranged for FVE to take over the 12 assisted living communities LTA also manages on behalf of third-party owners. However, FVE expects to offer to manage the facilities for at least a transition basis, according to a company announcement issued last week