Brookdale Senior Living to Buy Emeritus for $1.4 Billion

Brookdale Senior Living Inc. agreed to buy Emeritus Corp. for about $1.4 billion in stock, building a network of housing for the elderly across 46 U.S. states.

Investors in Seattle-based Emeritus will receive 0.95 shares of Brookdale for each share they own, the companies said in a statement today. That values Emeritus at about $28.56 a share, a 33 percent premium to today’s closing price. Including debt, the transaction is valued at about $2.8 billion.

Brookdale, based in Brentwood, Tennessee, said the deal will create the country’s “only national full-spectrum senior-living solutions company,” with more than 1,100 locations. It will also increase the company’s presence in high-population states in the West and Northeast, more than doubling its units in California, New York, New Jersey and Massachusetts.

“This combination will improve our ability to deliver the best high-quality solutions for the growing demographic of aging seniors and their families,” Brookdale Chief Executive Officer Andy Smith said in the statement. “With still only 10 percent market share post-merger, we are confident of our prospects for driving further long-term revenue growth.”

The combined company’s properties will offer services including assisted living, dementia care, skilled nursing, outpatient therapy, home health and hospice care. The deal will expand Brookdale’s units by more than two-thirds to 112,700.

Smith will be CEO of the combined company. Emeritus CEO Granger Cobb will join the board and continue in a consulting role, the companies said.

(Updates with Brookdale comment in fourth paragraph.)
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