(Adds background on the companies, share reaction)
By Greg Roumeliotis, Tracy Rucinski and Jessica DiNapoli
April 25 (Reuters) - Nonprofit hospital network operator
ProMedica and healthcare-focused real estate investment trust
Welltower Inc have made a $2 billion offer to acquire
Quality Care Properties Inc, people familiar with the
matter said on Wednesday.
The deal would make ProMedica a national U.S. healthcare
provider by allowing it to take on the assets of nursing home
chain HCR ManorCare Inc. Quality Care Properties won court
approval earlier this month to pick up HCR ManorCare from
ProMedica and Welltower's offer values Quality Care
Properties at around $20 per share, close to its current market
value, the sources said.
The negotiations between the companies are ongoing, and
there is no certainty that a deal will be reached, added the
sources, who asked not to be identified because the matter is
ProMedica, Welltower and Quality Care Properties did not
immediately respond to requests for comment.
Quality Care Properties shares were up on the news, rising
5.4 percent to $21.93 on Wednesday afternoon. Welltower shares
were down 2 percent at $50.00.
HCR ManorCare, which filed for bankruptcy in March, is one
of many chains that struggled to make rent on leases since
declining Medicaid and Medicare reimbursements started cutting
into margins in 2012.
Quality Care Properties, which is HCR ManorCare's landlord,
spans 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.
Quality Care Properties has agreed to give up its status as
a publicly traded real estate investment trust to take over HCR
ManorCare, and has appointed a management team led by Guy
Sansone, managing director at turnaround advisory firm Alvarez &
Marsal, to oversee the planned sale of 74 skilled nursing
ProMedica is a nonprofit health system providing quality
healthcare services to 28 counties in northwest Ohio and
southern Michigan, with 13 hospitals, six ambulatory surgery
centers and more than 300 other facilities.
Welltower, which has a market capitalization of $18.9
billion, invests in properties in the senior housing, post-acute
care and outpatient medical sectors.
(Reporting by Greg Roumeliotis, Jessica DiNapoli and Carl
O'Donnell in New York and Tracy Rucinski in Chicago
Editing by Matthew Lewis)
First Published: 2018-04-25 19:12:23
Updated 2018-04-25 20:03:50
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