Diversicare Announces the Planned Acquisition of Operations of Five New Facilities and Agreement to Terminate Lease for Arkansas Operations
Aug. 1, 2013
Diversicare Healthcare Services, Inc. (Nasdaq:DVCR) today announced multiple pending transactions as part of its portfolio management strategy.
As of August 1, 2013, the Company has assumed operations of Twinbrook Nursing and Rehabilitation Center in Louisville, KY. The facility will be rebranded as Diversicare of Seneca Place.
Additionally, the Company has reached an agreement in principal to operate four new facilities in the Midwest. These facilities have been operated by Catholic Health Partners to date, and subject to the obtaining of regulatory and other consents the Company expects to assume operations late in the third quarter or early in the fourth quarter of 2013. The facilities and locations are as follows:
- Mercy Franciscan at Schroder, Hamilton, OH
- Mercy Siena Woods, Dayton, OH
- Mercy St. Theresa, Cincinnati, OH
- Providence Retirement Home, New Albany, IN
Lastly, the Company has reached an agreement in principal with Omega Healthcare Investors, Inc. (NYSE:OHI) to terminate its lease with respect only to eleven nursing facilities located in Arkansas and to concurrently transfer operations to an operator selected by OHI. The termination is subject to certain conditions, including state licensure and regulatory approval. Upon the completion of the transaction, Diversicare will no longer operate any skilled nursing centers in the State of Arkansas. The termination is anticipated to occur on or about September 1, 2013.
Kelly Gill, the Company’s Chief Executive Officer, stated, “We are excited to announce that we anticipate assuming operations of five facilities, via two transactions, in complementary markets. First, we began this morning operating a new skilled nursing facility in Louisville, Kentucky, which is our second facility in the greater Louisville market. Secondly, we are pleased and honored to have been selected by Catholic Health Partners to assume operations at four facilities in Ohio and Indiana. These facilities have a history of deep commitment to high quality patient care, which we share.”
Mr. Gill concluded, “Diversicare has operated in Arkansas for over 20 years and we feel that we have a great team of caregivers, and good relationships with our patients and families. As a result, we did not take this decision lightly, but we have concluded that it is in the best interest of Diversicare and its shareholders to focus on our operations in other regions.”
Company Contact: Investor Relations:
Kelly J. Gill Charles Lynch
Chief Executive Officer Westwicke Partners
(615) 771-7575 (443) 213-0504