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Brookdale Takes ARC for $1B-Plus

CHICAGO-Brookdale Senior Living Inc. has entered into an agreement to purchase Nashville-based American Retirement Corp. for $1.2 billion in cash or $33 per share. The combined company will operate a total 535 facilities in 34 states.

By Dana Dubriwny | Updated on May 15, 2006

CHICAGO-Locally based Brookdale Senior Living Inc. has entered into an agreement to purchase Nashville-based American Retirement Corp. for $1.2 billion in cash or $33 per share. Following the completion of the acquisition, American Retirement will become a wholly owned subsidiary of Brookdale. The combined company will operate a total of 73 independent living facilities with more than 13,750 units; 413 assisted living homes with approximately 21,640 beds; and 49 continuing care retirement communities with 14,680 units/beds.

On Friday, news came that both company boards unanimously approved the acquisition. Brookdale executives today discussed the merger during the company’s first quarter earnings call. William B. Doniger, vice chairman of Brookdale, commented that American Retirement Corp. is a great strategic fit for the company, “and this combination creates, in our opinion, the highest quality portfolio of senior housing assets in the United States,” he said. “The successful expansion of American Retirement Corp.’s ancillary services business at our facilities represents significant upside to our future operating prospects.”

During the company’s first quarter, Brookdale completed the acquisition of 26 facilities for a total acquisition cost of $184.6 million. Subsequent to March 31, the company completed the acquisition of the Southern Assisted Living portfolio, which included 41 leased facilities with 2,887 units/beds; the first portion of the AEW portfolio, consisting of five owned facilities with 813 units/beds; and the Southland Portfolio, made up of four owned facilities with 262 units/beds.

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