Omega Healthcare Investors, a Hunt Valley-based real estate investment trust, will acquire MedEquities Realty Trust, the companies announced Wednesday.
Omega, which has been expanding through numerous acquisitions in recent years, will acquire all outstanding shares of Nashville, Tennessee-based MedEquities, valued at $600 million, in a move that adds 34 facilities in seven states.
“This acquisition reinforces our commitment to the skilled nursing and senior housing industry, while adding new asset types to our portfolio furthering our strategic objectives,” said Taylor Pickett, Omega’s CEO, in a statement.
Under the agreement, MedEquities stockholders will receive 0.235 shares of Omega’s stock plus $2 cash for each of their MedEquities shares. That’s a value of $10.26 per MedEquities share, based on Omega’s year-end closing price of $35.15 a share.
The purchase price represents a premium of $3.42 a share.
The boards of both companies have approved the acquisition, and the deal is expected to close in the first half of 2019.