Ventas Inc, a leading healthcare real estate investment trust (REIT), will acquire Nationwide Health Properties Inc (NHP) in a stock-for-stock transaction, valued at $7.4 billion, creating one of the largest publicly traded REITs and the leading healthcare REIT by equity value.
The transaction will create the largest healthcare REIT, with a pro forma equity value of approximately $17 billion, pro forma enterprise value of approximately $23 billion, and over 100 customer relationships.
Ventas's diverse portfolio will include more than 700 assets in 44 states (including the District of Columbia) and two Canadian provinces consisting of seniors housing communities, skilled nursing facilities, hospitals, medical office buildings and other properties.
NHP is a real estate investment trust that invests primarily in healthcare real estate in the US. As of 31 December 2010, the company's portfolio of properties, including mortgage loans and properties owned by unconsolidated joint ventures, totaled 667 properties.
Under the terms of the agreement, NHP shareholders will receive a fixed exchange ratio of 0.7866 Ventas shares for each share of NHP common stock they own.
Upon closing of the transaction, Ventas shareholders are expected to own approximately 65 per cent and NHP shareholders are expected to own approximately 35 per cent of the combined company. The transaction is expected to be completed in the third quarter of 2011.