Assisted Living Concepts (ALC) announced this month that it had signed an agreement to purchase 12 properties from Ventas Realty for $97 million according to a Milwaukee Journal Sentinel article. The deal includes $3 million to settle a lawsuit filed by Ventas in April wherein Ventas alleged that ALC breached the terms of its lease after state regulators in Georgia and Alabama threatened to revoke the licenses of several centers because of substandard care.
The residences, five located in Georgia, four in South Carolina and one in each of Florida, Alabama and Pennsylvania were previously operated by ALC under master lease agreements with Ventas Realty and MLD Delaware Trust. The transaction was funded with borrowings available under ALC's $125 million revolving credit agreement.
"We are pleased to reach a mutually satisfactory arrangement with Ventas and to have acquired these 12 residences. While we have had some recent regulatory challenges at several of these properties, we are taking actions to address these challenges and to enhance their quality," commented ALC President and CEO Charles H. "Chip" Roadman II, M.D. "The addition of these 12 residences increases our percentage of owned properties to 82.0%."
"Ventas stands for excellence in seniors housing. This transaction allows ALC's new chief executive officer and its Board of Directors to focus their attention and resources on providing quality care for its residents," Ventas Chairman and Chief Executive Officer Debra A. Cafaro said in a statement.
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Hello,
ReplyDeleteGreat information! Assisted living concepts are meant for seniors who require help with their personal care and typical daily activities, and at the same time they want to retain their independence. Thanks a lot....
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