KKR & Co. L.P.
KKR, Beecken Petty O'Keefe & Co. and Coastwood Senior Housing Partners Announce Agreement to Invest In Sunrise Senior Living Management Company
NEW YORK--(BUSINESS WIRE)--
Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates,
"KKR"), Beecken Petty O'Keefe & Company ("BPOC") and Coastwood Senior
Housing Partners LLC today announced the signing of a definitive
agreement to acquire the management company business of Sunrise Senior
Living, Inc. ("Sunrise"), a leading provider of senior living services
and housing, for approximately $130 million. Health Care REIT ("HCN")
will also invest approximately $26 million for a 20% interest in the
business. The acquisition is expected to close immediately prior to
HCN's previously announced acquisition of Sunrise discussed below.
"This partnership with KKR, BPOC and Coastwood is a major step forward
for our transaction with Health Care REIT," said Mark Ordan, Sunrise's
chief executive officer. "All of us at Sunrise are excited by the
opportunity to move forward with this next chapter in our story, and to
continue Sunrise's proud traditions of care and service to our
On August 21, Sunrise entered into a binding agreement with HCN pursuant
to which HCN committed to acquire all of the outstanding shares of
Sunrise for $14.50 per share. HCN will proceed with the acquisition of
Sunrise's real estate.
The management company being acquired will include Sunrise's existing
management contracts covering 282 communities, including those
communities to be acquired by HCN; leasehold interests in 15
communities; and 12 development parcels. In addition, as of the closing,
a subsidiary of the management company will employ all employees of
Sunrise and operate under the "Sunrise" name and brand.
"Sunrise has a culture and team that is committed to the highest
standards of living and quality of care for its residents, and we are
investing in that culture and that vision. With its excellent leadership
and dedicated employees, Sunrise is a great company that has forged
valuable partnerships with the industries' most respected property
owners. We are excited to be a part of its future as it expands its
relationship with Healthcare REIT and its other real estate partners in
the health care space," Ralph Rosenberg, Global Head of Real Estate at
"Our firm has deep roots in seniors housing, and we have always admired
the relationship-based care that Sunrise provides seniors across the
U.S. and internationally. We are delighted to partner with Sunrise
management and employees to continue to grow its platform and to
maintain its longstanding legacy as the industry standard," said Bill
Petty, Partner at BPOC.
The transaction, which is subject to customary closing conditions and
regulatory approvals, is expected to close in the first half of 2013.
Simpson Thacher Bartlett LLP served as legal adviser to KKR and Paul
Hastings LLP served as legal adviser to BPOC. Epstein Becker Green, P.C.
and Munsch Hardt Kopf & Harr, P.C advised both KKR and BPOC.
Sunrise Senior Living, a McLean, Va.-based company, employs
approximately 31,600 people. As of June 30, 2012, Sunrise Senior Living
operated 307 communities located in the United States, Canada and the
United Kingdom, with a unit capacity of approximately 29,800 units.
Sunrise Senior Living 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 services. Sunrise Senior Living's senior
living services are delivered by staff trained to encourage the
independence, preserve the dignity, enable freedom of choice and protect
the privacy of residents.
Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a
leading global investment firm with $61.5 billion in assets under
management as of June 30, 2012. With offices around the world, KKR
manages assets through a variety of investment funds and accounts
covering multiple asset classes. KKR seeks to create value by bringing
operational expertise to its portfolio companies and through active
oversight and monitoring of its investments. KKR complements its
investment expertise and strengthens interactions with investors through
its client relationships and capital markets platform. KKR is publicly
traded on the New York Stock Exchange (NYSE:KKR).
About Beecken Petty O'Keefe & Company
Beecken Petty O'Keefe & Company is a Chicago-based private equity
management firm founded in 1996 to invest in middle-market buy-out
transactions, recapitalizations, and growth platforms in the healthcare
industry. BPOC evaluates, structures, and manages investments on behalf
of institutional and individual investors. Since inception, BPOC has
raised in the aggregate over $1 billion to invest in private
transactions from its three committed private equity funds and third
party co-investors. The firm is headquartered in Chicago, IL. For more
information on BPOC, visit www.bpoc.com.
Recent BPOC news: www.bpoc.com/news.
About Coastwood Senior Housing Partners, LLC
Coastwood Senior Housing Partners, LLC is an investment firm led by
Daniel A. Decker that specializes in seniors housing and related
About Health Care REIT, Inc.
Health Care REIT, Inc., an S&P 500 company with headquarters in Toledo,
Ohio, is a real estate investment trust that invests across the full
spectrum of seniors housing and health care real estate. The company
also provides an extensive array of property management and development
services. As of June 30, 2012, the company's broadly diversified
portfolio consisted of 1,010 properties in 46 states and Canada.
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Kristi Huller, 212-230-9722
Source: Kohlberg Kravis Roberts & Co. L.P.
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