Seniors Housing Weekly Update -- Assisted Living Concepts Sold

February 26, 2013


 

February 26, 2013. 60 Seconds with Steve Monroe. At long last, the board found a buyer to take the company private at $12.00 per share.

Assisted Living Concepts Sold

We were wondering why Assisted Living Concepts had made no announcement about when they would be releasing fourth quarter earnings results, and now we know why. They finally found a buyer for the company despite months of denial, but we knew better. Although management wanted a higher number, all along we were saying that the top price range would be between $11 and $13 per share. And guess what, private equity firm TPG is paying $12 per share to the A shareholders and $12.90 to the B shareholders. I guess someone was listening. On Monday, the shares dropped by more than 4%, so there were no leaks on this one. The A shareholders will be receiving a 24% premium, and they should take the money and run. We know that the hedge funds that came in between $7.00 and $9.00 last year must be ecstatic with returns between 33% and 70%. But for TPG, the hard work begins when they close on the deal. Repairing the reputation, increasing occupancy, figuring out what the staffing really should be, and then figuring out what the company should be is no easy task.

 

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