Mainstreet Health Investments to expand senior care presence with $425M deal

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 - merger, acquisition, money, handshake

Healthcare real estate company Mainstreet Health Investments has signed a definitive agreement to acquire Care Investment Trust and its dozens of senior care and skilled nursing facilities in 11 states, with the expanded company rebranding to become Invesque.

For $425 million, Mainstreet will acquire 35 independent living, assisted living and memory care properties, as well as seven skilled nursing facilities. Mainstreet said this will add eight new states to its existing operations, with much of the acquired facilities being covered by private payers.

In all, the expanded Toronto-based company will comprise 80 properties with more than 8,500 suites or beds and increase the company’s pro forma asset value to $1.2 billion. Its assets will be nearly even split between independent living facilities and skilled nursing.

"This transaction is a significant achievement for our company and we are excited to announce this acquisition as we continue to deliver on our growth strategy,” Mainstreet chairman Rick Turner said in a statement. “We expect to continue acquiring high quality properties with strong operators in growing markets.”

If the acquisition clears regulatory hurdles, diversified holding company Tiptree will be Mainstreet’s largest shareholder, owning around 34 percent of the company.

Mainstreet itself was created through a reverse takeover of Kingsway Arms Retirement Residences in 2016, according to the Indianapolis Business Journal. If this deal closes, only 5 percent of shares of the new company, Invesque, will be owned by the parent company which led the takeover, Mainstreet Property Group.

The new name will reflect its growth strategy, a Mainstreet press release said, while cutting down on confusion with other companies with similar names.

“We are elated to re-brand the company and establish a unique individuality within the industry," CEO Scott White said in statement. “Invesque truly captures the energy and sophistication of our team, while aligning with our long-term growth strategy as a company.”

The name change is expected to take effect by Jan. 4, 2018 as long as its approved by shareholders.