Boston, MA 06/09/2014 (wallstreetpr) – Ventas, which is said to be the largest real estate investment trust in healthcare sector, announced that it agreed to buy American Realty Capital Healthcare Trust, Inc. (NASDAQ:HCT) in a deal valued $2.6 billion. The amount will be paid in stock as well as in cash. Ventas also announced that it would buy Canada’s 29 independent senior living housing communities in a deal worth $900 million in cash from the Holiday Retirement.
Highlights of the Deal
The amount to be paid in stock will be valued at $11.33 per share. This is 14% above Friday closing stock of A.R.C. Healthcare.
As part of the deal, the shares of A.R.C. Healthcare will be converted into a fixed number of Ventas shares at the negotiated stock price of $67.13 of Ventas.
After the deal, the shareholders of American Realty Capital Healthcare Trust, Inc. (NASDAQ:HCT) would be free to choose from either $11.33 in cash or 0.1688 of a Ventas common share in order to receive the amount of common stock that they own. The cash offer of this option has a limit of 10% of the outstanding shares of A.R.C. Healthcare.
Statement from Ventas
The Chief Executive of Ventas, Debra A. Cafaro in a statement said that the acquisitions were a part of stated strategy of the company towards a goal of being the leading owner of health care and senior living properties across the world. These acquisitions, he said, were consistent with the company’s aim to deliver growth, as well as superior returns to their shareholders.
Financial Advisers Helping the Two on Deal
While Ventas is being advised by the law firm Wachtell, Lipton, Rosen & Katz, Centerview Partners as well as UBS; American Realty Capital Healthcare Trust, Inc. (NASDAQ:HCT), on the other hand, was being financially guided by RCS Capital, JPMorgan Chase and Citigroup. The legal counselling is being provided to A.R.C. Healthcare by Proskauer Rose and Venable.
