The Dealmakers Forum E-Newsletter, March 13, 2013 - Brookdale and Emeritus Need Better PR, Advocat Announced an Agreement to Purchase Five Skilled Nursing Facilities in Kansas, Aviv REIT Sets Pricing Range

 

Bringing You Senior Care M&A Deals and News
 

March 13, 2013 Issue:

 

Seniors Housing Weekly Update: 60 Seconds with Steve Monroe
Brookdale and Emeritus Need Better PR. Making airwaves for all the wrong reasons, the two industry giants are facing public relations problems in California.... Read More

 

Recent Senior Care M&A Deals

HOME HEALTH CARE

Acquirer

Target

Price

 The Ensign Group

 Elite Home Health and Hospice

 N/A

LONG-TERM CARE

Acquirer

Target

Price

eQ Care Fund

Assisted Living Facility

$8.087 million

The Ensign Group

Legacy Rehabilitation and Living

N/A

Advocat, Inc.

Five skilled nursing centers

$15.5 million

 Aspen Square Management

 The Overlook

 $9.9 million

 

Deal of the Week: Advocat

Advocat, one of the smallest publicly traded companies in the senior care sector with a market cap of just $32 million, has announced an agreement to purchase five skilled nursing facilities in Kansas for $15.5 million, or about $35,000 per bed. Annual revenues are about $24 million, and while profitable, we believe the portfolio can be improved upon significantly; management stated that the deal will be accretive to earnings. The Private Bank will lead the financing of the acquisition, which is expected to close in the second quarter. This is the largest acquisition in recent years by the company, and apparently will mark the beginning of a new growth spurt by acquisition. This has been a sleepy company with some dissident shareholders who have wanted to sell the company or grow it. It looks like they will finally get the latter.... Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today

 

Aviv REIT Sets Pricing Range

Aviv Reit, which filed to go public late last year, has commenced its stock offering of 13.2 million shares. The estimated price range is $18.00 to $20.00 per share, and underwriters have the option to purchase up to another 1.98 million shares. If the full option is exercised and the IPO is priced at the mid-point, Aviv will have gross proceeds of about $288 million. Morgan Stanley, BofA Merrill Lynch and Goldman, Sachs are the joint book-running managers for the offering, and the stock has been approved for the ticker symbol “AVIV.” What a great time for a REIT IPO when the other health care REITs keep hitting new highs..... Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today

 

Expert Opinion: A Conversation with Bill Kaplan

In this "Expert Opinion" interview, Bill Kaplan, Co-Founder and Chairman, Senior Lifestyle Corporation, discusses shifts in seniors housing, REITs, seniors housing values, market rate properties, acquisitions, and more.....read more

 

Stock of the Week: Capital Senior Living

We are not sure whether this should be the stock of the week or of the month, since Capital Senior Living (CSU) was certainly the stock of the year in 2012. After surging by 135% last year, CSU’s shares jumped by 23% in the first two months of 2013 and have added another 16% so far this month. Just like last year, it is rising each month. In fact, it has increased in value in each of the past 15 straight months. The company turned in a very good fourth quarter and full year 2012, and still has a full acquisition pipeline and doesn’t seem to pay outrageous prices. The acquisitions will fuel growth, as will increasing occupancy and rates at its existing communities, so there is little reason for the train to come to a stop. A breather at the next station, perhaps, but not a stop..... Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today

 

Upcoming Interactive M&A Webcast:
Development Strategies: Expand, Build or Buy?
Thursday, March 14, 2013, 1:00 pm ET            
Who’s building what…and where? Is new construction financing available or are providers more likely to purchase existing communities/facilities outright? Or are they choosing instead to grow their businesses through small expansion projects? Find out from our expert panel: Brian Schiff (Moderator), SVP - Planning and Financial Services, Greystone Communities; Nick Gesue, Chief Credit Officer, Lancaster Pollard; Leslie Moldow, Managing Principal, Perkins Eastman; Suzanne Hodge Pugh, President, Aldersgate United Methodist Retirement Community, Inc.; and Mark Streicher, Principal, Sawgrass Partners.

Go to http://www.levinassociates.com/conferences/1303-online-conference or call 800-248-1668 to register.

 

NEW - The Senior Care Acquisition Report, 18th Edition - Preorder Today!
Deals have been made. The 2013 Senior Care Acquisition Report contains private deals in this market that are frequently too small to make it into the financial press. Take advantage of our limited 2-for-1 offer - Preorder The 2013 Senior Care Acquisition Report  by March 31st and receive The 2012 Senior Care Acquisition Report  FREE ($595 value)! Now that’s a recession resistant deal. Go to http://www.levinassociates.com/scardescription or call 800-248-1668 to preorder today!

 

Webcast Calendar... Click here to see more