Sunrise Senior Living Acquires Senior Housing Co.

MCLEAN, VA-In an arrangement that could be valued at up to $52.5 million, Sunrise Senior Living Inc. has committed to acquiring Irving, TX-headquartered senior housing management and development company Greystone Communities Inc. and certain associated units. As a result of the definitive agreement Sunrise will take on Greystone’s 14 Continuing Care Retirement Communities contracts, contracts for 17 communities currently in the works, as well as other consulting and marketing agreements. The 14 existing contracts involve properties in Alabama, Arizona, Florida, Hawaii, Indiana, Nevada, New York, West Virginia and Texas.

Twenty-three-year-old Greystone’s purchase price–which will be met by Sunrise through its cash holdings and funds from a corporate credit facility–will be about $45 million, plus $7.5 million in annual performance rewards through 2007, for an estimated possible total of $52.5 million.