Mega-merger of senior home operators in $2.8B deal

Two national operators of senior living communities are merging in a $2.8 billion deal, creating a company with 112,700 living units in 1,161 communities in 46 states.

Fifteen senior communities is the Philadelphia region will be part of the merged company being created by Brookdale Senior Living’s acquisition of Emeritus Corp.

Under the terms of the agreement, shareholders of Emeritus will receive 0.95 shares of Brookdale common stock for each share of Emeritus they hold.

The deal includes Brookdale’s assumption of Emeritus mortgage debt. The merger is expected to close during the third quarter of 2014.

Following the merger, Brookdale officials said it will have a senior living community within 10 miles of 6.5 million seniors 80 years or older.

Andy Smith, Brookdale’s CEO said the deal will provide his company with an entry into 10 new states including New Jersey. Post-merger, he said, the company will have a 10 percent marketshare in the senior living community market. The companies said merger will also enable Brookdale to expand its therapy, home health and hospice ancillary programs into Emeritus communities, and accelerate the launch of the Emeritus "Nurse on Call" home health services program.

Among the area senior living communities that will be part of the combined company are Nashville-based Brookdale’s Solano of Horsham, Clare Bridge of Montgomery and Wynnewood of Montgomery, all in Horsham, Pa.; Brendenwood in Voorhees, N.J. and Streling House of Deptford, in Deptford, N.J. Emeritus of Seattle, Wash., operates senior communities in Voorhees and Cherry Hill.

Source; Philadelphia Business Journal