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 Health Care REIT To Acquire Sunrise

Sunrise Senior Living, McLean, Va., will be acquired by Health Care REIT for $14.50 per share in all-cash transaction, the companies announced on Wednesday. 

The merger boosts Health Care REIT’s ownership of long term care communities to more than 58,000 units.

“This acquisition powerfully advances our strategic vision: own the highest quality, private pay seniors housing communities in strong, growing, affluent markets, and align with experienced, dynamic management teams,” said George Chapman, Health Care REIT’s chairman and chief executive officer (CEO), in an Aug. 22 press release.

The merger allows Health Care REIT to acquire all 20 of Sunrise’s wholly owned seniors housing communities, 17 of which are located in the United States and three of which are located in Canada.

Health Care REIT also stands to inherit Sunrise’s interest in all of its joint ventures, which total 105 properties, including 78 in the United States and 27 in the United Kingdom.

“We are most excited to achieve such a strong return for our shareholders while we forge a new relationship with a world class health care real estate owner/investor,” said Mark Ordan, Sunrise CEO. “We are proud that Health Care REIT has chosen to invest in our team and looks to us as partners going forward.”

Sunrise reports that the transaction “represents a 62.4 percent premium to Sunrise’s closing stock price on Aug. 21, 2012, and was unanimously approved by the Sunrise board of directors.”

Ordan viewed the high returns as an encouraging sign of a potentially prosperous new relationship with Health Care REIT.

The merger is projected to close sometime in early 2013, after the standard regulatory approvals are met.

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