Two of the country’s largest senior living providers have completed the $2.8 billion merger deal that will make them the largest senior living provider in the nation.
Brookdale Senior Living (NYSE: BKD) and Emeritus Senior Living Corp. (NYSE: ESC) announced today the completion of the merger between the two companies that will create what the company calls the first “national senior living solutions company.”
The combined company will operate more than 1,100 communities in 46 states, covering roughly 80% of the U.S. population, the company said.
With its new reach through the Emeritus transaction, the company has stressed its goal of becoming the only national senior living company, including a nationwide branding initiative and full-service provider.
“We are at a transformational point in the history of the company,” said Brookdale CEO Andy Smith in a press release upon the announcement. “With this merger, we will improve our ability to deliver the best, high quality solutions for the growing demographic of aging seniors and their families. Our newly combined company will have incredible size and scale in our industry. We will begin to leverage this scale to build a national Brookdale brand, create new efficiencies in our operating platform, and drive new innovations to serve our residents. We are excited to welcome the Emeritus associates into the Brookdale family as we build a bigger, stronger, more dynamic Brookdale for the future.”
Having recently laid plans toward expansion of its national headquarters in Nashville, Tenn. to accommodate the growing company, Brookdale has also announced the former Emeritus CEO and President Granger Cobb will serve on the Brookdale board of Directors. Previously, Cobb served as CEO and director of Summerville Senior Living and founded Cobbco, Inc., which was later acquired by Summerville.
“We are delighted to have Granger join our board of directors,” Smith said. “Granger’s leadership experience and senior living industry knowledge will be an asset to the board and the company. As the company continues to grow, his insight and rich background will be extremely valuable.”
Since the announcement of the merger, Brookdale has also entered into a $1.2 billion joint venture agreement with HCP, Inc. (NYSE: HCP), one of the three largest healthcare REITs. Through the joint venture, the companies will own, operate and develop a growing portfolio of entry-fee CCRCs.
Written by Elizabeth Ecker