Brookdale Senior Living and Emeritus Corp, each providing residential care at locations in several states – and both with operations in Washington - announced a merger late Thursday afternoon.
The merger will “create the first national senior-living solutions company,” a joint press release stated. “The combined companies will serve the growing market for senior living solutions as the single branded provider operating the only nationwide network of senior living communities.”
Residents are unlikely to see major changes, said Brookdale spokeswoman Julie Davis Thursday by telephone from Nashville.
“There will be minimal impact on the communities,” she said.
Seattle-based Emeritus, which last summer subsumed 38 Merrill Gardens facilities in eight states, operates facilities in Olympia, Gig Harbor, Puyallup, Federal Way, Steel Lake and Puyallup, according to the company website.
Tennessee-based Brookdale operates Villas at Union Park and Wynwood of Allenmore in Tacoma, Foundation House in Federal Way, and Clare Bridge centers in Olympia, Gig Harbor and Puyallup.
Both companies also serve residents in Seattle and in other areas of the state.
The merger will have no effect on either Merrill Gardens in Tacoma, which was not a part of the recent Emeritus deal, or other Merrill Gardens facilities on both sides of the state.
All Brookdale and Emeritus locations will eventually carry the Brookdale brand.
When the deal is complete later this year, the newly combined company will have more than 1,100 senior living communities in 1,161 communities in 46 states, and “will have the ability to serve more than 112,000 seniors and their families with a workforce of over 80,000 associates,” according to an informational website launched to explain the deal.
The combined company will offer services including independent living, assisted living, dementia care, skilled nursing, home health, hospice, therapies, short-term rehabilitation, long-term care and private-duty home care.
Under the agreement, Emeritus shareholders will receive 0.95 shares of Brookdale common stock in exchange for each share of their Emeritus common stock. The exchange ratio implies a 32 percent premium on Emeritus’ shares.
The transaction value totals $2.8 billion, with the inclusion of $1.4 billion of Emeritus mortgage debt, the companies said in their release.
Andy Smith, Brookdale CEO, stated, “In an industry with very attractive long-term growth dynamics, this strategic merger creates the first national, predominantly private-pay based, senior-living solutions company. This combination will improve our ability to deliver the best, high quality solutions for the growing demographic of aging seniors and their families.
“With still only 10 percent market share post-merger, we are confident of our prospects for driving further long-term revenue growth through organic expansion, while enhancing our position in a rapidly consolidating industry.”
Smith will serve as CEO, and Emeritus President and CEO Andy Cobb will join Brookdale’s board of directors.
Company corporate headquarters will remain in Nashville.