Equity firms to purchase Sunrise’s management business

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A group of private equity firms are planning to purchase the management company business of Reston-based Sunrise Senior Living Inc. before the company is sold to Health Care REIT Inc.
Kohlberg Kravis Roberts & Co. LP (together with its affiliates, “KKR”), Beecken Petty O’Keefe & Co. (“BPOC”) and Coastwood Senior Housing Partners LLC plan to acquire the management business for $130 million. Health Care REIT plans to invest $26 million to have a 20 percent interest in the business.

In August, Sunrise entered into a binding agreement with Health Care REIT to purchase Sunrise Senior Living for $14.50 per share, or more than $800 million.

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.

A subsidiary of the management company will employ all employees of Sunrise and operate under the “Sunrise” name and brand.
The transaction is expected to close in the first half of 2013.

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