Tuesday, June 28, 2011

AdCare Health Systems, Inc. (ADK) Inks $38.5M Acquisition in-line with M&A Strategy

AdCare Health Systems, Inc., a leading senior living and healthcare facility management provider, today announced it will acquire, lease or become the manager of 15 skilled nursing facilities in South Carolina, North Carolina, Virginia and Tennessee for $38.5 million, representing the company’s largest acquisition thus far.

Two of the facilities are to be purchased, nine leased, and four managed by AdCare. With an aggregate of nearly 2,000 beds, the facilities generate an estimated $93 million in gross annualized revenues, which are expected to be immediately accretive to AdCare’s earnings upon completion of the transaction in the fall.

Including previously announced transactions, AdCare’s estimated annualized revenue run-rate is anticipated to top $268 million, a more than 400 percent increase over 2010 revenues and an increase of more than 900 percent over revenues in 2009 when the company launched its current M&A campaign.

“This agreement brings the total number of facilities we’ve put under contract to 46 since we began our M&A campaign in the fall of 2009, and is by far our largest transaction to-date,” Chris Brogdon, AdCare’s vice chairman and chief acquisitions officer stated in the press release. “It represents our first entrance into South Carolina, Virginia and Tennessee, and expands our presence in North Carolina. The addition of these facilities is in line with our expansion into the Southeast, and will leverage the support staff we’ve already established in the region.”

The company is also evaluating additional acquisition opportunities in the Midwest and said it will continue to focus on its current M&A plan in the second half of 2011.

For more information visit www.adcarehealth.com

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