Senior Housing: AdCare to pay $18.5M for two Alabama nursing homes
from Dayton Business Journal
AdCare Health Systems Inc. is buying two nursing homes in Alabama for $18.5 million.
The deal is expected to close in the second quarter, according to a news release.
For AdCare (AMEX: ADK), the Springfield-based owner and manager of senior living facilities, it marks the first expansion outside of Ohio. The facilities have a total of 312 beds and currently generate approximately $18 million in annual revenue.
“We are seeing tremendous opportunities in the highly fragmented health care segments of senior assisted living, elderly nursing care and home health care services, all of which are exhibiting strengthening demographics combined with limited facilities to meet future demand,” said Chris Brogdon, AdCare’s vice chairman and chief acquisitions officer, in a statement.
AdCare has seen its stock price soar during the past year. It closed at $5.95 a share on Wednesday, up about 850 percent from its 52-week low of 70 cents per share on Mar. 13, 2009.
The company has a portfolio of retirement communities, assisted living facilities and nursing home facilities in western Ohio and operates three units: a property ownership division; a division that provides management and other services, such as accounting and consulting; and a home health care division.
AdCare’s employment ranges between 900 and 1,000, including about 30 people who work at the headquarters in Springfield.
