Ventas acquires Ardent Health Services (Ardent Medical Services, Inc.)

Ventas acquired Ardent Health Services (Ardent Medical Services, Inc.) for $1.75 billion in cash, a transaction completed in August 2015, structured as all cash.

Ardent Health Services (Ardent Medical Services, Inc.) operates in Hospital real estate (acute-care), is based in United States (Amarillo TX, Tulsa OK, Albuquerque NM; Nashville TN headquarters), had revenue of about approximately $2 billion in annual revenue (over 50% from commercial payors). Ventas acquired privately-owned Ardent Medical Services, Inc. (Ardent Health Services), one of the ten largest for-profit hospital companies in the U.S., for $1.75 billion in cash. Concurrent with closing, Ventas separated Ardent's hospital operations from its owned real estate, folded the real estate into the Ventas portfolio under long-term triple-net leases, and an Equity Group Investments (EGI)-controlled entity acquired a majority stake in the operating company while Ventas retained a 9.9 percent interest. Ardent (owned by funds managed by Welsh, Carson, Anderson & Stowe) generated approximately $2 billion in annual revenue with over 50 percent from commercial payors, operating in Amarillo TX, Tulsa OK and Albuquerque NM.

Ventas described Ardent as creating a growth platform in the attractive U.S. hospital real estate market, retaining the owned real estate under triple-net leases with an expected going-in cash yield exceeding 7 percent and 2.5 percent annual escalators while separating operations.

Created a hospital real estate growth platform with triple-net leases yielding over 7% going-in. Separated operations to an EGI-controlled entity (Ventas retained 9.9%) while retaining the real estate. Real estate folded into Ventas portfolio under triple-net leases; operations spun to EGI-controlled 'Ardent'

Advisory firms were not disclosed for this transaction.