Ventas Inc. strikes $184 million acquisition deal with ElderTrust.

Louisville, Ky.-based real estate investment firm Ventas Inc. purchased Wilmington, Del.-headquartered long term care facility operator ElderTrust in an all-cash deal worth $184 million, according to sources from both companies.

Under the agreement, which closed in December, Ventas bought all outstanding common shares of ElderTrust for $12.50 per share. Both companies trade on the New York Stock Exchange.

Real estate investor Ventas, which specializes in health care and nursing facilities, acquired ElderTrust's 18 health care land senior housing facilities, including nine assisted living facilities and one independent living facility.

Ventas Chairman, President and Chief Executive Officer Debra A. Cafaro said she was "delighted" with the merger. "[This agreement] is another important step in our strategic diversification plan ... ElderTrust's assets represent an attractive addition to our portfolio."

The merger meets the company's stated goals of acquiring high-quality assets in preferred markets that generate sustainable cash flow and that are operated by care providers with good reputations, Cafaro added.

ElderTrust Executive Chairman and acting President and CEO Michael R. Walker said the deal "delivers on our assurances that we would maximize value for ElderTrust's shareholders."

The deal is the latest in a recent string of acquisitions involving long term care companies. Other major activity includes:

* A deal by Ventas in early November to sell 10 medical care facilities, including eight skilled nursing facilities, to Louisville-based Kindred Healthcare Inc., which had leased and operated those locations. The transaction was valued at $85 million.

* In an effort to reduce operating costs, Fort Smith, Ark.-based Beverly Enterprises Inc. sold nine Southern California skilled nursing facilities to a local California investor group in November. Terms of the all-cash deal were not reported.

* CNL Retirement Properties Inc., an Orlando, Fla.-based real estate investment trust, acquired 17 senior housing facilities--including 12 assisted living and dementia care residences--from McLean, Va.-based Sunrise Senior Living Inc. The deal, struck in late October, was valued at $178.8 million.

* St. Louis, Mo.-based MDI Technologies, a developer and marketer of software products for the long term care industry, acquired Horizon Healthcare Technologies in October. HHT, also based in St. Louis, is a national long term care accounting software company operating in 34 states. Terms of the all-cash deal were not disclosed.

* Langhorne, Pa.-based RehabWorks Inc., reportedly the nation's oldest and largest contract therapy provider for health care facilities, was purchased by New York-based holding company Leucadia National Corp. as part of a deal involving RehabWorks' parent, Integrated Health Services.