Real estate investment trust HCP has signed a definitive agreement to acquire substantially all of the real estate assets of privately owned HCR ManorCare Inc. for a purchase price of $6.1 billion.
The companies explain that consideration for the purchase will consist of about $3.53 billion in cash, $1.72 billion reinvested from the payoff of HCP's existing debt investments in HCR ManorCare and $852 million in HCP common stock issued directly to the shareholders of HCR ManorCare.
HCP will acquire from HCR ManorCare 338 post-acute, skilled nursing and assisted-living facilities located in 30 states, with the highest concentrations in Ohio, Pennsylvania, Florida, Illinois and Michigan.
HCR ManorCare and its affiliates will continue to operate the assets pursuant to a long-term master lease supported by a guaranty from HCR ManorCare.
SOURCE: HCP
