Concurrent with the $20.75 per share deal, Welltower formed an 80/20 joint venture with ProMedica Health System, a non-profit hospital network operator. The joint venture will contain the real estate of QCP’s principal tenants, HCR ManorCare and Arden Courts.
Toledo, Ohio-based ProMedica signed a definitive agreement to buy the operations of bankrupt HCR ManorCare and Arden Courts, the second-largest U.S. nursing home chain.
Quality Care Properties had won a court approval earlier this month to buy HCR ManorCare from bankruptcy.
HCR ManorCare, which filed for bankruptcy in March, is one of many chains that struggled to make rent on leases since declining Medicaid and Medicare reimbursements started cutting into margins in 2012.
Reuters reported that ProMedica and Welltower were bidding to acquire Quality Care Properties earlier on Wednesday.
Reporting by Shalini Nagarajan in Bengaluru; Editing by Gopakumar Warrier
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