Fresh off the recent acquisition of Sunshine Senior Living, Discovery Senior Living is once again growing larger.
The company on Monday announced a new agreement to acquire the management contracts of 26 senior living communities operated by Senior Solutions Management Group.
The deal closed November 1. Discovery did not share financial terms in the announcement.
With the move, Discovery is expanding in eight states in the U.S. South and Southeast regions, and growing the company’s number of institutional owner partners. More than two-thirds of the portfolio’s roughly 2,200 units are assisted living, while 18% are independent living and 13% are memory care.
The deal expands Discovery’s footprint to encompass 50,000 units spanning 446 communities in 40 states.
The portfolio aligns with Discovery’s operating focus and expertise and carries overlap with the company’s current management footprint. The deal will create new opportunities to increased regional density and use new technology, business intelligence and shared centralized operating resources.
“This highly complementary transaction brings an established operating business and new institutional owner relationships into Discovery’s sophisticated platform,” Discovery CEO Richard Hutchinson said in a press release. “The team at SSMG brings more than 25 years of demonstrated operating expertise, a deeply embedded performance culture and strong local market capabilities that complement Discovery’s institutional infrastructure and disciplined approach to optimizing asset performance.”
Bonita Springs, Florida-based Discovery ascended to a spot as the nation’s largest senior living operator this year, overtaking the previous largest operator, Brookdale Senior Living (NYSE: BKD). The company has grown using a strategy that helped companies like hotel management firm Aimbridge Hospitality expand, with multiple smaller operating companies carrying brands and operations geared toward their respective markets.
With the acquisition of Sunshine Senior Living, the company is making good on its growth thesis.
“We’re actually seeing the thesis play out now,” Hutchinson said during an interview with Senior Housing News at the Fall NIC conference in Chicago. “As we grow in the segmentation model and the separated [management company] model infused with all this data and analytics, we’re accelerating performance.”
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