Largest healthcare REIT to become even larger
Healthcare Real Estate Insights™ has learned that Chicago-based Ventas Inc. (NYSE: VTR) has agreed to acquire American Realty Capital Healthcare Trust Inc. (Nasdaq: HCT) in a stock and cash transaction valued at $2.6 billion, or $11.33 per ARC Healthcare share.
The blockbuster deal makes Ventas, the largest healthcare real estate investment trust (REIT), even larger with a market capitalization of $19.7 billion at the time the deal was announced. In a news release, Ventas said the deal is scheduled to close by the fourth quarter (Q4) of this year.
In recent weeks, ARC was said to be in negotiations to acquire another healthcare REIT, Griffin-American Healthcare REIT II, for a reported $3.7 billion. But with the news of the ARC acquisition, the prospects for that possible deal are unclear.
In a separate deal announced at the same time, Ventas said it will also acquire 29 independent living facilities (ILFs) in Canada from Holiday Retirement for $980 million in Canadian dollars, or about $900 million in U.S. dollars. That deal is expected to close in Q3 of 2014.
Healthcare Real Estate Insights™ will take an in-depth look at the ARC and ILF acquisitions in its June edition.
Here’s a copy of the Ventas news release announcing the ARC acquisition: News Release
Here are links to some of the other media coverage on the acquisition:
Wall Street Journal: Health Care REIT Ventas to Buy ARC for $2.6 Billion in Cash and Stock
New York Times: Ventas to Buy American Realty Capital Healthcare for $2.6 Billion
Forbes: Healthcare Trust Ventas Buying American Realty Capital Healthcare Trust For $2.6 Billion
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