Brookdale Senior Living Announces Acquisition Transaction
NASHVILLE, Tenn., May 15, 2013 /PRNewswire/ -- Brookdale Senior Living Inc. (NYSE: BKD) today announced that it has entered into a definitive agreement to acquire seven senior living communities with a total of 613 units from Chartwell Retirement Residences for an aggregate purchase price of $80.9 million, plus customary transaction expenses. Brookdale has been managing six of the communities since its acquisition of Horizon Bay in September 2011.
The seven communities consist of 80 independent living units, 493 assisted living units and 40 Alzheimer's units, and had an average occupancy of 91.8% in 2012. These communities are located in Alabama (1), Arizona (2), Georgia (2), Louisiana (1) and Oklahoma (1). The Company expects to finance the transaction with approximately $61 million of first mortgage financing (substantially through the assumption of existing debt), with the balance of the purchase price to be paid from cash on hand.
"The communities are well located, purpose-built, enjoy good reputations in the market and fit well with Brookdale's existing operations. Brookdale currently manages all but the Alabama community. This acquisition is a natural step forward following the Horizon Bay acquisition to demonstrate Brookdale's ability to execute its strategy of acquiring certain of the managed assets if and when they are sold," said Andy Smith, Brookdale's Chief Executive Officer.
The consummation of the transaction is subject to the satisfaction of certain closing conditions and contingencies, including the receipt of certain lender and regulatory approvals and consents. The transaction is expected to close during the third quarter of 2013.
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 senior living solutions within properties that are designed, purpose-built and operated to provide the highest-quality service, care and living accommodations for residents. Currently Brookdale operates independent living, assisted living, and dementia-care communities and continuing care retirement centers, with 650 communities in 36 states and the ability to serve approximately 67,000 residents. Through its Innovative Senior Care program, the Company also offers a range of outpatient therapy, home health, personalized living and hospice services.
Certain items in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Those forward-looking statements are subject to various risks and uncertainties and include all statements that are not historical statements of fact and those regarding our intent, belief or expectations, including, but not limited to, all statements relating to the consummation and financing of the acquisition (including the anticipated timing thereof) and our expectations regarding possible future investment or acquisition opportunities with respect to managed assets. Words such as "expect(s)" and similar expressions are intended to identify such forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to a number of factors that could lead to actual results materially different from those described in the forward-looking statements. We can give no assurance that our expectations will be attained. Factors that could cause actual results to differ materially from our expectations include, but are not limited to, the risk that we may not be able to satisfy the closing conditions and successfully complete the acquisition, the risk that we may not be able to assume and obtain the mortgage debt financing, the risk associated with the current global economic situation and its impact upon capital markets and liquidity, and the other risks detailed from time to time in our filings with the Securities and Exchange Commission. Such forward-looking statements speak only as of the date of this press release. We expressly disclaim any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.
SOURCE Brookdale Senior Living Inc.