Boston, MA 02/21/2014 (wallstreetpr) – Brookdale Senior Living Inc. (NYSE:BKD) just moved higher on the value chain in the senior living segment, following the announcement of its $1.4 billion purchase of stocks in Emeritus Corp. (NYSE:ESC). The overall value of the merger is at $2.8 billion, which includes debt. The per share rate that BKD offered Emeritus shareholders is 33% higher than the day’s price, paying $28.56 on per share.
Emeritus assets add to BKD footprint
Brookdale Senior Living Inc. (NYSE:BKD) is expecting to expand its presence in the senior living space, following this merger. For some time now BKD had been looking for a partner who would complement its property portfolio, especially in those regions of the country it did not have a presence.
Brookdale Senior Living Inc. (NYSE:BKD) following the deal is expected to hold over 1,100 locations. The new areas where BKD will now be able to deliver high quality living solutions for the aging population will include some of the regions of the country which show higher density in population- California, New Jersey, Massachusetts as well as the West and Notheastern parts of the country.
For Brookdale Senior Living Inc, the expansion move is strategic.
First, the slightest turn around in the housing industry in the recent quarters, according to recent federal and industry reports. This has brought in higher value to properties, assets and partnering the right housing company has been critical for Brookdale Senior Living Inc. (NYSE:BKD) to move ahead on its growth curve. Emeritus is one of the few value-adding housing service providers, which were in the price bandwidth which Brookdale Senior could well match.
Secondly, and the most important reason for Brookdale to strengthen its senior living portfolio- recent statistical studies which indicate the high rate of ageing of US population.
The demand for senior living is round the corner, Brookdale Senior Living Inc. (NYSE:BKD) has indeed taken the first steps to strengthen its player position in this crowded segment!
