Retirement News : Seniors : Five Star in $58 million Assisted Living Center Deal

Five Star in $58 million Assisted Living Center Deal

Date Added: 07-06-2005

Healthcare services company Five Star Quality Care, Inc., has acquired six assisted living communities for an anticipated $58 million and Heartland Pharmacy for $4.4 million. Purchasing the pharmacy supports Five Star’s business strategy to purchase institutional pharmacies in areas where it may increase revenue by offering goods and services at senior living communities.

Five Star president Evrett Benton pointed out that acquiring the six assisted living centers, all of which are located in Western Pennsylvania, contributes to Five Star’s business plan to buy high quality living communities where the majority of revenue are derived from residents’ private resources. He said Five Star expects the acquisition to increase its earnings in late 2005.

His company owns and operates pharmacies that offer independent living apartments, accommodations and nursing services in 155 senior living communities. These communities contain more than 17,000 living units and are located in 28 states.

Five Star purchased these six living communities from Gordon Health Ventures, LLC. The properties have a resident capacity of 654 with the occupancy rate being 85 percent. Heartland Pharmacy provides services to an estimated 44 senior care facilities and operates a mail order pharmacy business serving about 25,000 customers in 38 states.

A company’s interest in incorporating assisted living communities into its portfolio seems to be on the rise. A recent transaction took place in which Nationwide Health Properties Inc. purchased two assisted living communities for $166 million in Virginia.

For More Information:

http://www.cpnonline.com/cpn/regions/article_display.jsp?vnu_content_id=1000947106