Irvine, California-based memory care provider Silverado has reached an agreement to sell almost the entirety of its home care business, Silverado At Home.
The transaction will be effective on or about July 8, according to a statement Silverado shared Friday with Senior Housing News.
San Francisco-based Home Care Assistance (HCA) is acquiring the business. HCA has about 100 franchised locations and nearly 60 company-owned locations in the United States. It provides a variety of at-home care services, including a brain health program branded as the Cognitive Therapeutics Method.
Under terms of the deal, Silverado will enter into a long-term strategic partnership with Home Care Assistance. HCA will offer employment to all Silverado at Home employees throughout California, and will become the preferred provider for all Silverado memory care communities and hospice sites in the state.
Houston, Texas is the only other market where Silverado At Home has a presence, and it will continue to operate as usual, Silverado Vice President of Sales and Marketing Jeff Frum told SHN.
Silverado declined to share financial details of the transaction.
“I’ve known Lily Sarafan, HCA’s CEO, for many years, and we’re confident that Lily and her team share Silverado’s values and commitment to improving the quality of life for people in the home wherever they call home,” Silverado CEO Loren Shook said in the company’s statement. “In fact, our purpose ‘to change the world in the way memory care services and end of life care are delivered’ aligns nicely with HCA’s mission ‘to change the way the world ages.’”
Silverado has been seeking a home care partner, in order to focus the organization more firmly around memory care, hospice and palliative care, Shook noted.
The bulk of Silverado’s business comes from its standalone memory care communities — a type of senior care that the company pioneered. This component of the business is shrinking from about 40 properties to about 20, as a portfolio owned by real estate investment trust Welltower (NYSE: WELL) is transitioning to a new operator. The home care transaction is unrelated to the transition of these properties, Frum told SHN.
Silverado has also been building hospice into a stronger tentpole, and it will remain a core part of the business going forward. Currently, hospice accounts for about 20% of the company’s revenue.
Home care accounted for significantly less — about $15 million annually, Silverado CFO Christian Sweetser told SHN in a recent Bottom Line interview.
“I am delighted to join efforts with Silverado CEO and pioneering leader Loren Shook through this partnership,” HCA CEO Lily Sarafan stated. “Home Care Assistance will continue Silverado’s legacy of world-class care through the established strength of our operations and deep commitment to elevating quality of life and client experience.”