Senior housing buyers who missed out on the Brookdale/Emeritus opportunity could get a consolation prize in Capital Senior Living (NYSE:CSU), writes Bloomberg.
Brookdale’s $1.4 billion acquisition of Emeritus is expected to successfully close this year, on the heels of Health Care REIT’s acquisition of Sunrise Senior Living and TPG’s purchase of Assisted Living Concepts.
The last large senior living company standing as a takeover candidate, then, is Capital Senior Living, whose stock jumped 7.4% after the Emeritus merger announcement, said Jeffrey Langbaum, a REIT analyst at Bloomberg Industries.
“After the deal is completed, Capital Senior will be one of the last remaining publicly traded acquisition candidates,” said Bloomberg citing Langbaum.
While Capital Senior Living may be called a consolation prize of sorts, its revenue is projected to grow nearly twice as fast as Emeritus’ in the next two years, Bloomberg data indicates.
The Dallas, Texas-based company is valued at $713 million and could garner at least a 21% premium from possible REIT suitors such as Ventas or Health Care REIT, JMP Group Inc. told Bloomberg.
“If you look down the list, [Capital Senior Living is] all that’s left,” Langbaum said in the article. “Is it a takeout candidate? Yeah, I’m sure it is.”
Capital Senior Living, Health Care REIT, and Ventas did not respond to Bloomberg’s requests for comment on CSU’s possible sale or acquisition, the article notes.
Read the full piece at Bloomberg.
Written by Alyssa Gerace