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Nationwide Health Properties set to sell for $7.4 billion

The Newport Beach-based firm will be acquired by Chicago's Ventas Inc.

By Kristen SchottPublished: February 28, 2011 08:58 AM

Newport Beach-based Nationwide Health Properties (NHP) is set to be acquired by Chicago-based Ventas Inc. for $7.4 billion. Upon completion of the deal in the third quarter, the combined company is expected to be one of the largest publicly traded real estate investment trusts (REIT) and the top health-care REIT by equity value.

NHP invests mainly in health-care real estate throughout the U.S. The company's portfolio boasts nearly 670 properties, including 298 senior housing facilities. Ventria, a health-care REIT, has more than 700 properties in 44 states and two Canadian provinces.

The transaction is expected to result in a pro forma equity value of $17 billion and an enterprise value of $23 billion, with more than 1,300 assets in 47 states.

In addition, the combined firm will have relationships with more than 100 regional operators, tenants and managers, including Atria, Brookdale Senior Living, Kindred Healthcare and Sunrise Senior Living, and will hold 14 million square feet of owned or managed medical office buildings, among other features.

“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, the combined company will have a unique opportunity for continued external growth," said Ventas Chairman and CEO Debra Cafaro. "We are excited to move forward with the NHP team. This combination unites two similar cultures that share core values and a strong track record of delivering superior returns to shareholders.”

Cafaro will serve as chairman and CEO of the combined firm. NHP Chairman, President and CEO Douglas Pasquale will remain on as a senior adviser to assist in the transition. Once the deal is completed, Pasquale and two other NHP directors will join Ventas' board.

"For NHP shareholders, Ventas is the right partner, bringing the right value at the right time," said Pasquale. "After 25 wonderful years of growth and success, we look forward to joining forces with Ventas, which shares our legacy of financial strength and top-tier returns for shareholders. Our shareholders, property operators and tenants will all benefit from our expanded strength, diversification and capabilities. ... I am personally committed to ensuring a smooth transition and the completion of the transaction as expeditiously as possible.”

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