Genesis will acquire 24 SNFs in $240 million Revera deal
George Hager, Genesis CEO
Genesis Healthcare will acquire 24 skilled nursing facilities from Revera Inc., as part of a $240 million portfolio.
As part of the purchase, Genesis will acquire real estate for 20 of the 24 Revera properties, with the remaining four under long-term lease agreements with Healthcare REIT Inc. Genesis also will take over operations of Premier Therapy, Revera's contract rehabilitation business. The transaction was announced in mid-June, and is expected close by the end of 2015.
The deal includes eight skilled nursing facilities in New Jersey, five in Vermont, three in Washington, two in Connecticut, two in Massachusetts, and one each in Maryland, Virginia, New Hampshire and Rhode Island.
“The transaction is a good geographic fit for us, adding high-quality assets and density to our core markets in the northeast — New Jersey, and in the state of Washington,” said Genesis CEO George Hager Jr. in a statement. “The transaction also aligns nicely with our growth and deleveraging objectives, as it will be accretive to earnings, increase our fixed charge coverage and expand facility ownership to 23 percent of our inpatient sites.”
The 24 skilled nursing facilities in the portfolio contain 2,056 beds, bringing Genesis' total bed count to 44,805, further solidifying its top ranking on the American Health Care Association's list of largest nursing facility companies. Genesis, headquartered in Pennsylvania, currently operates 380 facilities nationwide and employs roughly 3,800 full and part-time workers.
“This transaction supports Revera's new strategic direction to focus the company on its core strengths in senior living, enabling investment in growth and innovation in its private pay portfolio across Canada, the United States and the United Kingdom,” said Revera President Thomas Wellner in a statement.