The Dealmakers Forum E-Newsletter, February 12, 2014 - Fourth Quarter Earnings Arrive, Kohlberg Kravis Roberts & Co. L.P. (KKR) has Agreed to Sell its 80% Stake in Sunrise Senior Living, Time to Find a Financial Partner

 

Bringing You Senior Care M&A Deals and News
 

February 12, 2014 Issue:

 

Seniors Housing Weekly Update: 60 Seconds with Steve Monroe
Fourth Quarter Earnings Arrive. So far, a mixed bag, with Skilled Healthcare Group not so good, and Brookdale Senior Living much better.... Read More

 

Recent Senior Care M&A Deals

Home Health Care

 

 

Acquirer

Target

Price

LHC Group, Inc.

Deaconess HomeCare

$60 million

Long-Term Care

 

 

Erickson Living

Devonshire CCRC

N/A

AVIV REIT

Texas skilled nursing facility

$15.9 million

Regional owner/operator

Two assisted living facilities

$4.6 million

NorthStar Healthcare Income Inc.

Harvard Square

N/A

 

Deal of the Week

In what may be the shock of the week, if not the month, Kohlberg Kravis Roberts & Co. L.P. (KKR) has agreed to sell its 80% stake in Sunrise Senior Living, a stake it purchased a little over a year ago from Health Care REIT (NYSE: HCN) as part of HCN’s purchase of the Sunrise portfolio. In that sale, which closed in January of 2013, HCN kept a 20% interest in the Sunrise management company, and Sunrise was going to be the platform that KKR had been hunting for to expand in a big way in the seniors housing business. After all, the $130 million price was chump change for a private equity firm the size of KKR, so whether by acquisition or development, they had plans to grow. And….they just hired a new CEO (Penny McIntyre) last November to help them with that growth. It looks like she will reporting to a new master, as Canada-based Revera Inc. purchased 76% of the Sunrise management company, with Health Care REIT boosting its share up to 24%. What is interesting is that Health Care REIT owns a large Canadian portfolio managed by and co-owned with Chartwell Seniors Housing (TSX: CSH.UN), which is Revera’s major competitor in the Canadian seniors housing market. Sunrise and Revera are expected to remain as separate companies, and Revera claims it was attracted to Sunrise’s presence in the U.S. and U.K. markets. But is there more than meets the eye? If so, we hope to find out..... Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today

 

Financing of the Week

If you are a provider and want to grow, now is the time to find a financial partner. And if growth is going to be by development, a long-term equity partner is often the best way to go. Take the case of Vero Beach, Florida-based Watercrest Senior Living Group. It has recently signed a $500 million co-development partnership with Sweden-based Index International AB which will involve developing approximately $100 million of seniors housing properties annually for five years. The goal is to open up to six communities a year. Index International was established in 1998 and is a global independent investment company specializing in real estate and equity investments, currently active in Sweden and North America, but expanding in North America and Europe.  Apparently, the principals of Index met with numerous seniors housing operators in the U.S., and they liked the operating culture at Watercrest. The rest will soon be history......Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today

 

People on the Move

Amit Ghosh has joined Orlando, Florida-based ROC Seniors Housing Fund Manager, LLC (Seniors IM) as a vice president of asset management. Seniors IM, a newly formed entity and an affiliate of Bridge Investment Group Partners, LLC, will focus on investing in seniors housing and medical office buildings. Most recently, Mr. Ghosh was with Ventas (NYSE: VTR). Seniors IM has closed on the first $41 million capital raise of an anticipated $500 million in total. They plan to allocate their investments with about 80% in seniors housing and 20% in medical office buildings. The properties can include independent living, assisted living and memory care, and some skilled nursing on an isolated basis….Meanwhile, CliftonLarsonAllen (CLA) has snagged Kathryn Brod for its senior living practice. After 13 years as the senior vice president and director of research at Ziegler, Brod moved to not-for-profit provider Mather LifeWays. Now, she will be working out of CLA’s Oak Brook, Illinois office serving the consulting firm’s senior living clients.......Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today

 

NEW - The Senior Care Acquisition Report, 19th Edition - Preorder Today and Get Last Year's FREE ($595 Value)!
Deals have been made. The 2014 Senior Care Acquisition Report contains private deals in this market that are frequently too small to make into financial press. Take advantage of our limited 2-for-1 offer - Preorder The 2014 Senior Care Acquisition Report by February 28th and receive The 2013 Senior Care Acquisition Report FREE ($595 value)! Now that’s a deal! Go to http://www.levinassociates.com/landing/scar19order or call 800-248-1668 to preorder today.

 

TOMORROW: Interactive Webcast:
Continuing Care at Home: A Way To Broaden Your Reach

Thursday, February 13, 2014, 1:00 pm ET

Continuing Care at Home (CCaH), sometimes called LifeCare at Home, can be a powerful addition to a CCRC’s continuum and a revenue generator for the bottom line. Seniors pay a monthly fee for life care without having to give up the comfort of—or investment in—their own home. While this is a rapidly growing and cutting-edge program, there are pricing issues, levels of risk, and best operating practices to consider. Go to http://www.levinassociates.com/conferences/1402-online-conference or call 800-248-1668 to register.

 

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