Iowa-based Lifespace Communities, Inc. and Texas-based Senior Quality Lifestyles Corporation (SQLC) may soon join forces to become the fifth-largest not-for-profit senior housing provider in the United States.
The two nonprofit senior housing providers announced on Wednesday that they have entered into a non-binding letter of intent for a proposed affiliation. The companies expect that the affiliation would involve Lifespace becoming the sole corporate member or shareholder of SQLC and one or more of its affiliates, according to a recent disclosure filing.
One of SQLC’s affiliates is for-profit management firm Seniority, Inc., which is owned by SQLC and serves as the operator of each SQLC community.
“Lifespace and SQLC share a similar mission with consistent values and commitments,” Lifespace Communities President and CEO Sloan Bentley said in a prepared statement. “By combining efforts to become one organization, we will be able to enhance operational performance, create advancement opportunities for team members across a wider system of communities and provide even greater financial stability for residents.”
Lifespace is the the 11th largest not-for-profit senior living provider in the country, according to the most recent LeadingAge Ziegler Top 150 (LZ 150). The company currently operates 12 continuing care retirement communities (CCRCs) in seven states, and serves approximately 4,200 residents.
SQLC, meanwhile, is the 36th largest nonprofit senior housing provider in the U.S., according to the LeadingAge Ziegler Top 150. Through its affiliates, SQLC operates five CCRCs in Texas and one in Indiana, and serves about 2,100 residents.
If SQLC and Lifespace Communities were to merge, the resulting company would manage about 5,900 units, and would have clocked in as the fifth-largest not-for-profit senior housing provider on the 2017 LZ 150.
“As not-for-profit organizations, there are many similarities that exist between Lifespace and SQLC,” Joe Anderson, interim CEO of SQLC, said in a prepared statement. “As one entity, our residents should have greater trust in this stronger and more diverse company to deliver a purposeful, compassionate senior living experience with dignity and respect.”
Completion of the affiliation is subject to a variety of conditions, including receipt of necessary regulatory approvals, satisfactory completion of due diligence, and the development of mutually satisfactory documentation.
Affiliations among nonprofit senior housing providers have been more common in recent years, as companies are opting to form joint ventures for strategic reasons. These reasons include leadership turnover, health care complexities and technology demands. In fact, over 91 not-for-profit communities changed sponsor or owner status in 2016, establishing a new record.
Written by Mary Kate Nelson