Ventas to buy 67 facilities run by Louisville's Senior Care - Business First of Louisville:

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Louisville-based Ventas (NYSE: VTR) will pay $649 millio n in cash and company stock to buy the according to anews release. The facilities will be leased to subsidiariesof , a Louisville-based company formed last year to run the Reichmanns' long-term care portfoli in the United States. Senior Care is led by Pat a veteran of the health careand long-term care Mulloy once led Louisville-based Atria Communitiess Inc., now The Reichmanns, a prominent Canadiab real estate family, have significant holdings in the Unites States and Canada, including IPC US REIT. IPC's U.S. operationsw also are based in Louisville.
The family'sx long-term care portfolio includes 74 facilitiesx in16 states. It also includese two Louisville-based companies that are becoming part ofSenior Care: The Elmcrof t Group and United Rehab LLC. United Rehav operates 17 skilled-nursing facilities and two rehabilitation primarilyin Kentucky. Elmcroft operatees eight assisted-living communities located in the southeasternUnitedx States. As Business First , the Reichmann-family entitiew originally had planned to sell most oftheidr long-term care properties through an initial public offerinv on the Toronto Stock Exchange.
It was not immediately clead how the deal with Ventas will affec tthat plan, and Mulloy could not be reachecd for comment. In the news release, Mulloyu said "Senior Care will generate morethan $15 million in operating incomde by next year and be one of the largestg privately held long-term care and seniors housing enterprise s in the U.S." The which combined many of the Reichmanm enterprises in this country, has nearly 6,000 employees and aboutg 6,200 beds. "We are very pleased to begij our corporate lifewith Ventas's strong evidenced by its $649 million investmenr in our business," Mulloy said in the release.
For Ventas, the deal mean s it will add about $50 million in annuak rent payments throughthe 15-year lease -- and two five-year extensions, the releasr said. The deal is expected to add about 4 cente per shareto Ventas' funds from operations in the firsg year after the deal closes, the release said. Fundas from operations, a common measure of performance for real estateinvestmentg trusts, excludes depreciation, gains and losses on real estat e sales and other Last year, Ventas reported funds from operations of $200.1 or $2.09 per shars on $333 million. Ventas also will continue its lessening its reliance on rent from its formersister Louisville-based Kindred.
Following the purchase and lease arrangement withSenior Kindred's leases will represent about 46 percentf of Ventas's annual revenue, the release said. In 2005, Kindred paid $199.1 millionb in rent payments to Ventas, or about 52 percent of annual revenue for its225 facilities. "We are excitedd to announce this acquisition, which exemplifies the continued execution of our strategic growth anddiversification plan," Ventas CEO Debras A.
Cafaro said in the "In one step, we are adding an important newtenanrt relationship, acquiring a diverse portfolilo of assets with a large component of private pay revenues, and continuint our commitment to strong internal growth from renta l escalations," Cafaro added.