Eleven Long-Term Care Facilities in Missouri Sell for $27.2 Million to Platinum Health Care

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Deaconess Long Term Care Inc. has sold 11 of its facilities in Missouri to affiliates of Platinum Health Care LLC for $27.2 million in an all-cash deal. Consisting of 852 licensed skilled nursing beds and 128 assisted living beds, the portfolio ranks among the largest to close in Missouri in recent history.

Skokie, Ill.-based Platinum is a private company founded in 2001 that manages long-term care facilities throughout the Midwest. Platinum assumed control of the facilities involved in the transaction on Feb. 1.

At closing, the portfolio-wide EBITDAR (earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs) for the trailing 12-month period was approximately $3 million, yielding a capitalization rate of 11%, according to Clayton, Mo.-based Healthcare Realty Brokerage, which executed the sale.

“This hard-won closing represents the final chapter of a marathon transaction that began nearly 18 months ago,” remarked Grant Edwards, president of Healthcare Realty, in a press release.

“The buyer could not easily reach agreement with the seller on the precise structure of the transaction, which was originally contingent upon seller financing. At the end of the day, I was very pleased that Healthcare Realty Brokerage was able to play an instrumental role in effectuating an all-cash deal that satisfied both parties’ closing requirements,” added Edwards.

Cincinnati-based Deaconess sold the properties in order to focus on its core competencies in hospital and home health services. The company also sought a more concentrated geographic focus.

Deaconess continues to own and operate four long-term care facilities in Ohio, one in Missouri, and Ottawa Retirement Village in Ottawa, Kan. It also leases and operates Belleview Valley Nursing Home in Belleview, Mo.


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