NASHVILLE, Tenn., Oct. 9 /PRNewswire-FirstCall/ -- Brookdale Senior Living Inc. (NYSE: BKD) (the "Company") today announced that it has entered into a definitive asset purchase agreement with affiliates of Sunrise Senior Living, Inc. (NYSE: SRZ) to acquire 21 senior living communities that are currently owned by those affiliates for an aggregate purchase price of $204 million plus customary transaction expenses. The portfolio has a total of 1,389 units, comprised of 92 independent living units, 876 assisted living units and 421 Alzheimer's units. The communities are located in 11 states -- California, Colorado, Connecticut (2), Georgia, Indiana (4), Michigan, New Mexico, North Carolina, Ohio (6), Pennsylvania (2) and Virginia.
"We are extremely pleased to be adding these high-quality assets to our portfolio. Many of these communities are in markets where we have either built or are building a continuum network. We see significant upside potential in these assets and expect to leverage the full resources of Brookdale to quickly add operating and marketing support as well as introduce our array of ancillary services. In fact, over 80% of the units are in markets that we can immediately serve with therapy and 55% with home health. We expect that the transaction will be accretive beginning in 2010. We look forward to building on the success of these communities, providing high-quality care and services to these residents and welcoming the communities' associates into the Brookdale family," said Bill Sheriff, CEO of the Company.
The Company expects to finance the transaction with approximately $134 million of mortgage debt (substantially through the assumption of existing debt), with the balance of the purchase price to be paid from cash on hand. The consummation of the transaction is subject to the satisfaction of certain closing conditions and contingencies and the receipt of certain lender approvals. The transaction is expected to close in November 2009.
About Brookdale Senior Living
Brookdale Senior Living Inc. is a leading owner and operator of senior living communities throughout the United States. The Company is committed to providing an exceptional living experience through properties that are designed, purpose-built and operated to provide the highest-quality service, care and living accommodations for residents. Currently the Company owns and operates independent living, assisted living, and dementia-care communities and continuing care retirement centers, with 546 communities in 35 states and the ability to serve approximately 52,000 residents.
Safe Harbor Statement
Statements contained in this press release and statements made by or on behalf of the Company relating hereto may be deemed to constitute forward-looking information made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include all statements that are not historical statements of fact and those regarding the intent, belief or expectations of the Company or its management, including, without limitation, all statements regarding the consummation of the acquisition and the related financing, and all statements regarding the Company's expectations concerning the future performance of the acquired communities and their effect on the Company's financial results. These forward-looking statements may be affected by certain risks and uncertainties, including without limitation the following: (i) the Company's ability to successfully complete the Sunrise portfolio acquisition and integrate it into the Company's operations, (ii) the Company's ability to assume and obtain the mortgage debt financing, (iii) the Company's ability to satisfy the other closing conditions, (iv) the risk that the Company will be unable to improve the acquired communities' results of operations and cash flows, (v) the risks associated with adverse market conditions of the senior housing industry and the United States economy in general, and (vi) the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2008 under the caption "Risk Factors" and in the Company's other filings with the SEC. In light of the significant uncertainties inherent in the forward-looking statements included herein, the Company's actual results could differ materially from such forward-looking statements. The Company does not undertake any obligation to publicly release any revisions to any forward-looking statements contained herein to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events.
SOURCE Brookdale Senior Living Inc.