Omega Healthcare to Buy Aviv REIT

Omega Healthcare Investors Inc. (OHI) has agreed to buy Aviv REIT Inc. (AVIV) in an all-stock deal that values the company at about $1.65 billion, further consolidating the fragmented skilled-nursing facility sector.

The deal will combine Omega's 562 skilled nursing facilities and 63,532 beds with Aviv's 312 properties and 26,520 beds.

Under the terms of the deal, Aviv shareholders will receive a portion of Omega stock valued at $34.97 based on Thursday's closing price. Aviv shareholders are expected to own about 30% of the combined company once the deal closes.

Omega's chief executive, Taylor Pickett, will maintain his position at the new company. Omega will add three new seats to its board for Aviv directors, including its chief executive, Craig Bernfield.

"The combination of Omega and Aviv creates the premier pure-play skilled nursing facility REIT which, with the expertise and proven track records of the combined management teams, will be well-positioned to continue as the leading consolidator in the large, highly fragmented SNF industry," Mr. Pickett said in a statement Friday.

Among other recent deals in the sector, Kindred Healthcare Inc. (KND) agreed to buy Gentiva Health Services Inc. (GTIV) for about $720 million in cash and stock, after a five-month chase that ultimately led Kindred to boost its offer by 50%.

Write to Chelsey Dulaney at [e-mail]

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