HCR ManorCare, about to be sold to Quality Care Properties, is folded into second deal with ProMedica, Welltower
Welltower Inc. and hospital operator ProMedica are acquiring Quality Care Properties Inc. for nearly $2 billion, in an 80/20 deal the companies announced late Wednesday.
QCP is currently in the process of purchasing HCR ManorCare, which is emerging from bankruptcy proceedings. The nonprofit ProMedica will become a nationwide healthcare entity when the deal, which was first leaked earlier Wednesday, comes to fruition.
Welltower, a healthcare real estate investment trust, announced that the board of directors of both it and QCP unanimously approved a definitive agreement under which Welltower will acquire all of the outstanding shares of QCP in an all-cash deal for $20.75 per share offer.
Reuters initially reported that negotiations between the companies were ongoing, but ProMedica, Welltower and Quality Care Properties — all based in Toledo, OH — did not immediately respond to requests for comment. Around midnight, Welltower's announcement confirmed the megadeal.
A statement from ProMedica reveals the intent of its new partnership: to further merge the healthcare continuum under one health system ownership.
"The partnership will enable ProMedica to gain immediate scale in the fast-growing home health, post-acute and memory care markets, obtain a best-in-class portfolio of assets staffed by highly trained and dedicated healthcare professionals, and develop a diversified business that can better evolve with the current healthcare industry," the company said in a statement.
Quality Care Properties, HCR ManorCare's landlord, has 257 skilled nursing properties, 61 assisted living properties, a surgical hospital and medical office buildings in 29 states. HCR ManorCare has a network of more than 500 skilled nursing and rehabilitation centers, memory care communities, assisted living facilities, outpatient rehabilitation clinics, and hospice and home healthcare agencies. It is expected to sell off 74 of those nursing facilities as part of its bankruptcy exit strategy.
ProMedica currently provides healthcare in 28 counties in northwest Ohio and southern Michigan, with 13 hospitals, six ambulatory surgery centers and more than 300 other facilities.
Welltower is a real estate investment trust focused on senior housing, post-acute care and outpatient medical sectors.