Retirement News : Seniors : Sunrise Senior Living to buy Greystone

Sunrise Senior Living to buy Greystone

Date Added: 03-05-2005

Sunrise Senior Living, the nation's largest provider of senior living services, is acquiring a smaller competitor that recently opened the Kahala Nui senior care facility.

McLean, Va.-based Sunrise (NYSE: SRZ) said Monday it had signed a definitive agreement to acquire Greystone Communities Inc., a developer of CCRCs, a senior living services industry term which stands for "continuing care retirement communities."

This refers to communities that offer multiple levels of assisted living, so a senior can live independently as long as possible but can call on help when needed. A typical CCRC will have what amounts to a hospital wing to take care of residents when and only when it's necessary.

Greystone has more than 30 CCRCs in its portfolio, either open or in development, including the $180 million Kahala Nui community, which recently opened near Kahala Mall. These are management contracts, and Sunrise says it will not acquire any real estate in the transaction. In the case of the Hawaii property, Kahala Senior Living Community Inc., a nonprofit corporation led by a volunteer board of directors, constructed the new facility using state bonds.

The aggregate purchase price for the Greystone transaction is estimated to be $45 million plus approximately $1 million in transaction costs, representing approximately seven times Greystone's anticipated 2005 net income before taxes. Sunrise also will pay an additional $7.5 million if Greystone meets certain performance milestones in 2005, 2006 and 2007 for a total potential purchase price of $52.5 million, plus transaction costs, subject to various adjustments set forth in the acquisition agreement.

Sunrise did not previously have any operations in Hawaii, and its acquisition of Greystone also puts it into Nevada for the first time.

Sunrise Senior Living, the nation's largest provider of senior living services, is acquiring a smaller competitor that recently opened the Kahala Nui senior care facility.

McLean, Va.-based Sunrise (NYSE: SRZ) said Monday it had signed a definitive agreement to acquire Greystone Communities Inc., a developer of CCRCs, a senior living services industry term which stands for "continuing care retirement communities."

This refers to communities that offer multiple levels of assisted living, so a senior can live independently as long as possible but can call on help when needed. A typical CCRC will have what amounts to a hospital wing to take care of residents when and only when it's necessary.

Greystone has more than 30 CCRCs in its portfolio, either open or in development, including the $180 million Kahala Nui community, which recently opened near Kahala Mall. These are management contracts, and Sunrise says it will not acquire any real estate in the transaction. In the case of the Hawaii property, Kahala Senior Living Community Inc., a nonprofit corporation led by a volunteer board of directors, constructed the new facility using state bonds.

The aggregate purchase price for the Greystone transaction is estimated to be $45 million plus approximately $1 million in transaction costs, representing approximately seven times Greystone's anticipated 2005 net income before taxes. Sunrise also will pay an additional $7.5 million if Greystone meets certain performance milestones in 2005, 2006 and 2007 for a total potential purchase price of $52.5 million, plus transaction costs, subject to various adjustments set forth in the acquisition agreement.

Sunrise did not previously have any operations in Hawaii, and its acquisition of Greystone also puts it into Nevada for the first time.

Sunrise Senior Living, the nation's largest provider of senior living services, is acquiring a smaller competitor that recently opened the Kahala Nui senior care facility.

McLean, Va.-based Sunrise (NYSE: SRZ) said Monday it had signed a definitive agreement to acquire Greystone Communities Inc., a developer of CCRCs, a senior living services industry term which stands for "continuing care retirement communities."

This refers to communities that offer multiple levels of assisted living, so a senior can live independently as long as possible but can call on help when needed. A typical CCRC will have what amounts to a hospital wing to take care of residents when and only when it's necessary.

Greystone has more than 30 CCRCs in its portfolio, either open or in development, including the $180 million Kahala Nui community, which recently opened near Kahala Mall. These are management contracts, and Sunrise says it will not acquire any real estate in the transaction. In the case of the Hawaii property, Kahala Senior Living Community Inc., a nonprofit corporation led by a volunteer board of directors, constructed the new facility using state bonds.

The aggregate purchase price for the Greystone transaction is estimated to be $45 million plus approximately $1 million in transaction costs, representing approximately seven times Greystone's anticipated 2005 net income before taxes. Sunrise also will pay an additional $7.5 million if Greystone meets certain performance milestones in 2005, 2006 and 2007 for a total potential purchase price of $52.5 million, plus transaction costs, subject to various adjustments set forth in the acquisition agreement.

Sunrise did not previously have any operations in Hawaii, and its acquisition of Greystone also puts it into Nevada for the first time.

For More Informaton: http://pacific.bizjournals.com/pacific/stories/2005/05/02/daily10.html