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

09.14.2012

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 residents."

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 KKR, stated.

"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.

About Sunrise

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.

About KKR

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 services.

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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Media Contact
KKR
Kristi Huller, 212-230-9722
Kristi.Huller@kkr.com

Source: Kohlberg Kravis Roberts & Co. L.P.

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