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AdCare Health Systems Inc. (ADK) Completes $18M Acquisition Expected to Generate 229% Increase in 2011 Revenue

AdCare Health Systems Inc., a leading skilled nursing and assisted living provider, has completed its acquisition of two skilled nursing facilities in Dublin and Marietta, Ga. The remaining third facility of this group, located near Atlanta, is expected to close by end of May – the aggregate acquisition price totals $18 million.

“The acquisition of these facilities are among the some 19 facilities we’ve purchased or leased since we began our M&A program in the fall of 2009,” Chris Brogdon, AdCare’s vice chairman and chief acquisitions officer stated in the press release. “These latest facilities significantly expand our presence in Georgia, joining the 10 facilities we already operate in the state. In addition to these Georgia facilities, we have also announced the agreement to purchase four skilled nursing facilities in Arkansas and the lease of one skilled nursing facility in Missouri.”

The acquired facilities have a combined total of 335 beds that generate an estimated $16.4 million in annualized revenues. The addition of the facilities is anticipated to immediately be accretive to AdCare’s earnings, which, when combined with other transactions announced and in the process of closing, is expected to exceed $175 million at an annualized rate. This would represent an increase of more than 229 percent over the company’s revenues in 2010 and an increase of more than 555 percent over revenues in 2009.

The company’s M&A program continues to be AdCare’s main focus for 2011, and the company said it is considering several other acquisition opportunities in the south, as well as around its home base in the Midwest.

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