Omega Healthcare to buy rival Aviv in all-stock deal valued at $3 billion
Omega Healthcare is buying rival real estate investment trust Aviv in an all-stock deal worth about $3 billion.
The companies said Friday that Aviv shareholders will receive a portion of Omega stock valued at $34.97 for each Aviv share. That represents a premium of about 16 percent to Omega's closing price Thursday.
Omega CEO Taylor Pickett will stay on as CEO of the combined company, while Aviv Chairman and CEO Craig Bernfield will join the board.
The deal is expected to close in next year's first quarter.
The companies each own hundreds of nursing homes across the country. Omega Healthcare Investors Inc. is based in Hunt Valley, Maryland, while Aviv REIT Inc. is headquartered in Chicago.
Shares of both companies are climbing in early-morning trading.