VENTAS has said it will buy Nationwide Health Properties for about $7.4bn in stock, creating the largest healthcare real estate investment trust in the US.
Under the terms of the deal, Nationwide Health shareholders will get 0.7866 Ventas shares for each NHP share held.
Ventas, which has been on a shopping spree since October last year, said on closing of the deal, Ventas shareholders will own about 65 per cent and Nationwide Health shareholders will own about 35 per cent of the combined company.
“With Ventas’ successful track record of value-creating transactions and NHP’s longstanding history of regional, asset-level acquisitions, taken together with one of the strongest balance sheets in the REIT industry,” Ventas’ chief executive officer Debra Cafaro said.
The deal is expected to close in the third quarter of 2011 and add to Ventas’s normalised funds from operations immediately after the close.
Centerview Partners is financial adviser to Ventas and JP Morgan Securities is financial adviser to NHP.