xml:space="preserve">
xml:space="preserve">
Advertisement

Omega completes acquisition of Aviv

A Hunt Valley real estate investment trust focused on skilled nursing facilities said this week it had closed on its acquisition of a smaller Chicago company in a deal that expands its holdings to more than 900 properties in 41 states.

Omega Healthcare Investors Inc. paid for the deal in stock, issuing 43.9 million shares to former Aviv REIT Inc. stockholders, in exchange for the firm's outstanding stock in a deal valued at roughly $1.79 billion. The deal closed Wednesday, when Omega shares ended the day a $40.74 each, about $5 a share higher than in October, when the deal was first announced.

Advertisement

As part of the merger, approved by Omega shareholders last Friday, all of Aviv's outstanding unsecured debt was repaid with new or expanded borrowings by Omega. Omega closed a $700 million offering of senior notes last month.

CEO Taylor Pickett said in a statement that the Aviv merger "firmly positions Omega to continue as the leading consolidator in the large, highly fragmented [skilled nursing facility] industry."

Advertisement

Pickett will continue in his role as CEO, while Aviv's former president and chief operating officer was appointed chief corporate development officer. Aviv's former chairman, as well as two former directors, received seats on the board.

The merger gave Omega's shareholders ownership of about 72 percent of the combined company, while Aviv's have the balance.

Omega has expanded rapidly in recent years, increasing its holdings from roughly 250 facilities at the beginning of 2009 to more than 560 at the end of last year as it established itself as a leading owner of real estate for skilled nursing facilities. It reported $221.3 million in net income for 2014, up roughly 28 percent from $172.5 million in 2013.

Omega's stock closed Thursday at $41.48, up 1.8 percent.

Recommended on Baltimore Sun

Advertisement
Advertisement
Advertisement