Brogdon Family, LLC Announces Intention to Commence Tender Offer for Majority Interest in AdCare Health Systems
<0> Brogdon FamilyChristopher Brogdon, Manager, 404-386-9607 </0>
Brogdon Family, LLC (“Brogdon Family”), a Georgia limited liability company owned in part by Christopher F. Brogdon, a Director of AdCare Health Systems, Inc. (NYSE MKT: ADK) (NYSE MKT: ADK.PRA), a leading long-term care provider, today announced that it intends to commence a tender offer to the shareholders of AdCare to acquire a majority interest of the Company. Mr. Brogdon and his affiliates currently own approximately 12% of the outstanding common stock of AdCare, and thus Brogdon Family and its affiliates intend to purchase at least an additional 43%, and up to an additional 63%, of AdCare’s outstanding common stock, at a cash purchase price of $8.00 per share.
The intended offer price represents a premium of approximately 86% over the closing share price of April 16, 2013, the last trading day prior to today’s announcement. The terms and conditions of the tender offer will be described in an offer to purchase and related letter of transmittal that will be mailed to AdCare’s shareholders when Brogdon Family commences its tender offer, which is expected to occur within ten business days. The tender offer will be subject to a financing condition and to the tender of a sufficient number of AdCare’s outstanding common stock such that Brogdon Family and its affiliates would own at least a 55% interest in the Company, as well as customary conditions, including receipt of any required governmental approvals.
Brogdon Family and its principals have been in the nursing home and assisted living business for over 25 years and presently own over 50 nursing homes and 22 assisted living properties.