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 Emeritus And Brookdale To Merge in $2.8 Billion Deal

​Brookdale Senior Living and Emeritus Senior Living announced on Thursday a $2.8 billion merger agreement to create the largest-ever senior care provider in the country.

Known already as the two largest assisted living providers in the United States, the companies said in a joint press release Thursday that by joining forces they will “serve the growing market for senior living solutions as the single branded provider operating the only nationwide network of senior living communities with fully integrated ancillary services across the continuum of care.”

The union will create a network of approximately 112,700 units in 1,161 communities in 46 states. The new portfolio will be located in 330 markets, where 80 percent of the U.S. population is located, the release said.

Under the agreement, Emeritus shareholders will receive 0.95 shares of Brookdale common stock in exchange for each share of their Emeritus common stock. “The transaction value totals $2.8 billion, with the inclusion of $1.4 billion of Emeritus mortgage debt,” the announcement said.

"In an industry with very attractive long-term growth dynamics, this strategic merger creates the first national, predominantly private-pay based, senior living solutions company,” said Andy Smith, Brookdale’s chief executive officer (CEO). "This combination will improve our ability to deliver the best, high quality solutions for the growing demographic of aging seniors and their families. With still only 10 percent market share post-merger, we are confident of our prospects for driving further long-term revenue growth through organic expansion, while enhancing our position in a rapidly consolidating industry.” 

"Combining and maximizing the significant strengths of our two outstanding companies is certain to be of tremendous advantage in supporting our customers and their families as they face the challenges of aging,” said Emeritus CEO Granger Cobb. “We are also pleased that Emeritus shareholders will realize compelling and immediate value, as well as the opportunity to participate in the upside potential inherent in this powerful combination."

Following the merger, which is expected to take place in the third quarter this year, Andy Smith will serve as CEO and Mark Ohlendorf as president and chief financial officer of the combined company.

“Certain members" of Emeritus' senior management team are expected to continue in "senior positions" after the merger, and Granger Cobb will be joining Brookdale's board of directors, the press release said.

The company's corporate headquarters will remain in Nashville, where Brookdale now resides.

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