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  • Seller
  • Buyer
  • Type
  • Date Announced
  • Seller AUM
  • Greystone Communities, Inc.
  • Sunrise Senior Living, Inc.
  • Real Estate Managers
  • May 2, 2005
  • N/A

Seller Details

Greystone Communities, Inc. has provided comprehensive services to the senior living industry for nearly 25 years. These services include: strategic planning for organizational growth, new project analysis, campus development, expansion and re-development, resident marketing, financial advisory, operations management and other consulting services. The company has been headquartered in Irving, Texas since 1989, and currently has over 180 employees. Greystone's corporate officers are long tenured, as evidenced by their cumulative 250+ years with Greystone. Since its inception in 1982, Greystone has focused almost exclusively on the not-for-profit sector of the continuing care retirement community (“CCRC”) segment of the senior living industry.

Buyer Details

Sunrise Senior Living is the nation's largest provider of senior living services. The McLean, VA-based Company employs more than 35,000 people. As of March 31, 2005, Sunrise operated 384 communities in the United States, Canada, Germany and the United Kingdom with a combined capacity for more than 43,600 residents. Sunrise also had 33 communities under construction in these countries with a combined capacity for approximately 3,100 residents. Sunrise offers a full range of personalized senior living services, including independent living, assisted living, care for individuals with Alzheimer's and other forms of memory loss, as well as nursing and rehabilitative care.

Transaction Summary

Sunrise Senior Living Inc. has agreed to acquire Greystone Communities Inc., a developer and manager of continuing care retirement communities, in a move to expand into the not-for-profit sector.

Greystone will operate as a division of Sunrise under the continued leadership of existing Greystone senior management. The founders of Greystone -- Michael Lanahan and Paul Steinhoff -- as well as Greystone President Mark Andrews and Executive Vice President John Spooner, will enter into employment agreements with four-year terms with Sunrise, effective as of closing.

Sunrise will pay $45 million plus about $1 million in transaction costs, representing about seven times Greystone's anticipated 2005 pretax earnings. Sunrise also will pay an additional $7.5 million if Greystone meets certain performance targets in 2005, 2006 and 2007 for a total potential purchase price of $52.5 million, plus transaction costs. The company said it expects to fund the acquisition through existing cash balances and corporate credit facility.

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