AdCare Health Systems, Inc., a leading skilled nursing and assisted living provider, has closed the previously announced acquisition of a skilled nursing facility in College Park, Georgia. The addition of this facility completes the three acquisitions in Georgia previously announced, following the recent acquisitions in Dublin and Marietta, Georgia. The three facilities were purchased for an aggregate price of $18 million.
The facilities have on aggregate 335 beds that generate an estimated $16.4 million in annualized revenues, and their addition is anticipated to be immediately accretive to AdCare’s earnings.
AdCare has initially financed the acquisitions through bank loans. These loans are expected to be refinanced with a loan guaranteed by the United States Department of Agriculture (USDA) on the Dublin facility and Small Business Administration loans for the Marietta and College Park facilities.
Combined with other transactions announced and in the process of closing, AdCare’s estimated annualized revenue run-rate is expected to exceed $175 million. This would represent an increase of more than 229% over the company’s revenues in 2010, and an increase of more than 555% over revenues in 2009 when it initiated its current M&A campaign.
“The acquisition of College Park nursing facility is among the some 20 facilities we’ve purchased or leased since we began our M&A program in the fall of 2009,” said Chris Brogdon, AdCare’s vice chairman and chief acquisitions officer. “This latest facility expands our presence in Georgia, joining the 12 facilities we already operate in the state. The addition of this Georgia facility is in line with our expansion into the Southeast.”
“We’re also considering a number of attractive new opportunities around our home base in the Midwest,” added Brogdon, “with our M&A program continuing to be a major focus for us in 2011.”
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