An Omega Healthcare holding. Photo by Omega Healthcare.
HUNT VALLEY, MD & NASHVILLE, TN—Omega Healthcare Investors has closed on its previously-announced acquisition of MedEquities Realty Trust. The transaction is valued at $600 million.
Following the acquisition, Omega will continue to be a publicly traded REIT focused on skilled nursing facilities. It has 34 properties in seven states, managed by 11 different operators.
This is a diversification play for Omega as well as an opportunity for growth, according to an earlier statement by CEO Taylor Pickett. The acquisition also reinforces the company's commitment to the skilled nursing and senior housing industry, he said.
Under the terms of the merger agreement, each outstanding share of MedEquities common stock automatically was converted into the right to receive 0.235 of a share of Omega common stock plus $2 in cash, which represents a value of $10.85 per MedEquities share based on the $37.67 closing price for Omega common stock on May 16, 2019.
Separately, MedEquities declared a special cash dividend of $0.21 per share payable to the holders of record of MedEquities common stock as of the closing of the transaction, which will be paid together with the cash consideration from the transaction.
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