Health Care REIT Inc., the Toledo-based owner of senior housing and health-care properties, announced today that it has agreed to acquire Sunrise Senior Living Inc. for $14.50 a share to expand its assisted-living facilities.
The deal represents a 62 percent premium over Sunrise’s closing share price of $8.93 yesterday. The company has about 58.3 million shares outstanding, implying a value of $845 million, according to data compiled by Bloomberg News. It reflects a real estate value of about $1.9 billion, Health Care said in a statement.
Health Care REIT will acquire Sunrise’s 20 wholly-owned senior housing communities in the United States and Canada as well as the McLean, Va.-based company’s interest in joint ventures that own 105 communities, including 27 in the United Kingdom. The properties are concentrated in large markets such as New York, Los Angeles, Philadelphia, and Boston.
“This acquisition powerfully advances our strategic vision: own the highest-quality, private-pay seniors housing communities in strong, growing, affluent markets,” George L. Chapman, Health Care REIT’s chairman and chief executive officer, said in the statement.
After the transaction, Health Care REIT will own more than 58,000 units of senior housing, according to the statement.
Sunrise shares jumped 59 percent to $14.18 at 8:56 a.m. New York time in premarket trading.
Health Care REIT stock fell about 3 percent to $57.90 a share as of midmorning.