Ventas acquires Ardent Health Services (Ardent Medical Services, Inc.)

Ventas acquired Ardent Health Services (Ardent Medical Services, Inc.) for $1.75 billion in cash, a transaction completed in August 2015, structured as all cash.

Ardent Health Services (Ardent Medical Services, Inc.) operates in Hospital real estate (acute-care), is based in United States (Amarillo TX, Tulsa OK, Albuquerque NM; Nashville TN headquarters), had revenue of about approximately $2 billion in annual revenue (over 50% from commercial payors). Ventas acquired privately-owned Ardent Medical Services, Inc. (Ardent Health Services), one of the ten largest for-profit hospital companies in the U.S., for $1.75 billion in cash. Concurrent with closing, Ventas separated Ardent's hospital operations from its owned real estate, folded the real estate into the Ventas portfolio under long-term triple-net leases, and an Equity Group Investments (EGI)-controlled entity acquired a majority stake in the operating company while Ventas retained a 9.9 percent interest. Ardent (owned by funds managed by Welsh, Carson, Anderson & Stowe) generated approximately $2 billion in annual revenue with over 50 percent from commercial payors, operating in Amarillo TX, Tulsa OK and Albuquerque NM.

Ventas described Ardent as creating a growth platform in the attractive U.S. hospital real estate market, retaining the owned real estate under triple-net leases with an expected going-in cash yield exceeding 7 percent and 2.5 percent annual escalators while separating operations.

Created a hospital real estate growth platform with triple-net leases yielding over 7% going-in. Separated operations to an EGI-controlled entity (Ventas retained 9.9%) while retaining the real estate. Real estate folded into Ventas portfolio under triple-net leases; operations spun to EGI-controlled 'Ardent'

Ventas has completed its acquisition of AHS, and an EGI affiliate has completed its majority investment in a newly capitalized hospital operating company, which will continue to be branded Ardent.Ventas, EGI and Ardent Health Services joint statement, August 4, 2015

Advisory firms were not disclosed for this transaction.

You're subscribed.

Thanks for signing up.