Diversicare Completes Acquisition of Kansas Portfolio
BRENTWOOD, Tenn., May 1, 2013 (GLOBE NEWSWIRE) — Diversicare Healthcare Services Inc. (Nasdaq:DVCR), a premier provider of long-term care services primarily in the Southeast and Southwest, today announced the completion of its previously disclosed purchase of five skilled nursing centers in Kansas for $15.5 million. The nursing centers have annual revenues of approximately $24 million, and their purchase is expected to be accretive to earnings early in the Company’s tenure as operator. The acquisition was financed in conjunction with a renewal and expansion of the Company’s credit facility with a syndicate led by The PrivateBank.
Commenting on the transaction, Kelly J. Gill, the Company’s President and Chief Executive Officer, stated, “I am excited to complete this transaction, which marks our expansion into our ninth operating state and increases our center count by more than 10 percent. Since embarking on our portfolio-expansion strategy in 2012, we have now added eight new centers through purchases, lease financing, and de novo construction, a testament to our acquisition pipeline, our deal flexibility, and our broadening relationships with financing partners. The Kansas transaction, our largest to date, will allow us to exercise the operating leverage we have created in our Company, and moreover we believe attractive opportunity exists for organic growth at these centers as we undertake planned renovations and implement our operating strategies.”
Diversicare provides long-term care services to patients in 53 skilled nursing centers containing 5,982 licensed nursing beds, primarily in the Southeast and Southwest. For additional information about the Company, visit Diversicare’s web site: www.dvcr.com.
CONTACT: Company Contact: Kelly J. Gill Chief Executive Officer 615-771-7575 Investor Relations: Charles Lynch Westwicke Partners 443-213-0504