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Extendicare sells six Florida SNFs for $40.5M.

Extendicare Health Services, the U.S. subsidiary of Markham, Ontario-based Extendicare Inc., has sold the shares of Florida 6 Healthcare Facilities, which owns and operates six Florida nursing homes totaling 763 beds, to Tandem Health Care of Moon Township, Pennsylvania. Tandem paid $40.5 million, or about $53,000 per bed.

Net proceeds and any tax benefits realized from the sale, which closed on December 30, will be used to pay down debt under Extendicare's term credit facilities. The homes have operated under the Arbor name. Under the terms of the the transaction, Extendicare retains the right to the Arbor name.

"These assets do not meet our performance criteria or are not strategic to the achievement of our goals," said Dr. Joy D. Calkin, deputy chairman and CEO, in a prepared statement.

Extendicare operates 298 facilities with capacity of 29,600 residents.

Including the newly acquired facilities, Tandem now has 23 SNFs in operation and four in development. "We're planning on completing another transaction at the end of the month," says Chairman and CEO Lawrence Deering. "Clearly we're in a growth mode, taking advantage of what's happening in consolidation of the industry."

And there's good product out there, he notes. "These are terrific buildings. The oldest was built in 1985, and all the others were built in the '90s."

Tandem has facilities in Florida, Virginia, Pennsylvania, and New Jersey.
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Publication:Contemporary Long Term Care
Date:Feb 1, 2000
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