Ventas, a healthcare real estate investment trust, acquires privately held hospital chain Ardent Medical Services for $1.75 billion. Shartia Brantley reports.
More consolidation in the healthcare industry. Ventas, a healthcare real estate investment trust, will acquire Ardent Medical Services for $1.75 billion in cash. Ardent is a private hospital chain with twelve acute-care hospitals, a rehabilitation hospital in addition to specialty physician groups and retail pharmacies. The deal gives Ventas more than 2,000 beds. Ventas shares are up nearly 2-percent in pre-market trading. Under the deal, Ventas will split Ardent's real estate portfolio from its hospital operations. The hospitals will be sold to a new company owned by current Ardent management and other equity partners. Ventas will retain a small stake. Ventas currently owns senior housing communities and medical office buildings, but plans to spin off its skilled nursing facilities. The company says the spinoff will be completed in the second half of 2015. Ventas completed its acquisition of American Realty Capital Healthcare Trust also known as HCT in January.