Tenn. company acquires area skilled-nursing facilities
05/02/2013 10:21 AM
08/08/2014 10:16 AM
A Tennessee-based operator of more than 50 skilled-nursing and related health centers said Thursday that it has completed an acquisition of five skilled-nursing facilities in Kansas, including two in the Wichita area.
Diversicare Healthcare Services Inc., based in the Nashville suburb of Brentwood, said the purchase price for the facilities was $15.5 million.
The acquired facilities include the 62-bed Sedgwick HealthCare Center at 712 N. Monroe in Sedgwick, renamed Diversicare of Sedgwick; and the 119-bed Haysville HealthCare Center at 215 N. Lamar in Haysville, renamed Diversicare of Haysville.
The other facilities are in Chanute, Council Grove and Larned, which combined represent 237 skilled-nursing beds.
“The Kansas transaction, our largest to date, will allow us to exercise the operating leverage we have created in our Company,” Kelly Gill, Diversicare president and CEO, said in a news release. “…We believe attractive opportunity exists for organic growth at these centers as we undertake planned renovations and implement our operating strategies.”
Gill also said the acquisition represents the company’s expansion into its ninth state.
It has facilities in Alabama, Arkansas, Florida, Kentucky, Ohio, Tennessee, Texas and West Virginia.
The publicly traded company reported revenue of $308 million and a loss of $4.9 million in 2012, according to a March news release. It attributed the loss in net income to professional liability expenses, the startup of new skilled-nursing facilities and electronic medical record implementation costs.
It said the Kansas facilities have annual revenue of about $24 million.
More information about Diversicare can be found at www.dvcr.com.
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