Sun Healthcare Completes Deal for Regency Health

New Mexico-based Sun Healthcare Group Inc. said Wednesday it completed its purchase of Regency Health Services Inc. for $625 million in cash and assumed debt, bringing Sun a step closer to becoming one of the largest nursing home operators in the U.S.

Albuquerque-based Sun paid $22 a share for Regency, and said about 99% of Regency’s outstanding shares were tendered at midnight Tuesday.

The purchase adds 110 long-term care centers to Sun’s operations, bringing the worldwide total to 446 centers with 43,551 beds.

Meanwhile, Omega Healthcare Investors Inc. said it had acquired 24 nursing homes and two rehabilitation hospitals from Regency for $86 million and leased them back to Sun for $8.3 million a year over 14 years.