The owners of Discovery Senior Living are potentially lining up a buyer for the nation’s largest operator, with a possible valuation nearing $1 billion.
According to an Oct. 20 report from Reuters based on an unnamed source, the companies that back Discovery Senior Living have tapped William Blair, an investment bank, to find a buyer for the operator. According to the report, a sale could value the company at $1 billion, and Discovery’s annual earnings before interest, taxes, depreciation and amortization (EBITDA) currently totals about $65 million.
A representative for Coastwood declined to comment on the reported sale exploration Wednesday. A representative for Discovery did not immediately respond to a request for comment.
In 2022, Lee Equity Partners and Coastwood Senior Housing Partners invested in the Bonita Springs, Florida-based senior living operator. In the years that followed, Discovery’s leaders and the company’s backers embarked on a growth strategy that grew it to manage about 450 communities across the U.S. The company’s strategy centers on standing up regional platforms with separate brands and operations all linked under the Discovery Senior Living umbrella.
This year, Discovery Senior Living’s total unit count eclipsed that of Brookdale Senior Living (NYSE: BKD), making it the nation’s largest senior living operator.
Earlier this week, Discovery announced the acquisition of Sunshine Retirement Living, an Oregon-based operator with 33 communities under management.
If the sale rumors materialize into a tangible deal, Discovery would be the latest top-five-largest senior living operator to change hands in a sizable deal this year, but it would not be the first. Earlier in October, Sunrise Senior Living changed hands in a $1 billion deal that transferred majority ownership to BDT & MSD Partners, with the rest of the company owned by its executive team. Sunrise paired that announcement with news of a sizable $7.5 billion development pipeline.
Companies featured in this article:
Coastwood Senior Housing Partners, Discovery Senior Living, Lee Equity Partners, William Blair & Company
