GRANCARE ACQUIRES SEVEN FACILITIES
GRANCARE ACQUIRES SEVEN FACILITIES CULVER CITY, Calif., July 1 /PRNewswire/ -- GranCare Inc.
(NASDAQ: GRNC) announced today that it completed a transaction involving seven long-term health care facilities previously owned by The Samaritan Foundation. The seven facilities, which reported net revenues in 1991 of $18 million, had an average occupancy of 88 percent, of which approximately 50 percent were non-Medicaid patients and are located in Arizona, South Dakota and California.
Under terms of the transaction Health and Rehabilitation Properties Trust purchased the facilities from Samaritan and entered into 35-year leases and purchase options with GranCare on the seven facilities. These facilities total 823 beds, representing 699 skilled nursing beds and 124 beds for assisted/residential living. "We expect this acquisition to add approximately $.05 per share to GranCare's annual earnings which allows us to expand and enter a favorable new market for our services," said Gene E. Burleson, president and chief executive officer. This acquisition brings GranCare's total facilities to 66 located in California, Wisconsin, Arizona, Illinois, Colorado and South Dakota. GranCare reported revenues of $175 million and net income of $3.8 million, or $.69 per share, for the year ended Dec. 31, 1991. -0- 7/1/92 R /CONTACT: Gene E. Burleson president and CEO of GranCare, 310-645-1555; or Craig A. Parsons or Kim P. Feazle of Pondel Parsons & Wilkinson, 310-207-9300, for GranCare/ (GRNC) CO: GranCare Inc. ST: California IN: HEA SU: TNM KJ-EH -- LA009 -- 5655 07/01/92 11:33 EDT
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|Date:||Jul 1, 1992|
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