Ventas In Talks to Buy Part or All of Brookdale Senior Living
February 16 2017 - 4:51PM
Dow Jones News
By Dana Mattioli and Dana Cimilluca
Healthcare-facility owner Ventas Inc. is in talks to acquire
part or all of Brookdale Senior Living Inc. after another big
suitor cooled on its bid for the nation's largest operator of
senior-living centers.
Ventas is vying for Brookdale after another leading contender to
make a deal with the company, private-equity firm Blackstone Group
LP, lost interest, according to people familiar with the matter.
Brookdale had a market value of nearly $3 billion Thursday
afternoon as well as nearly $6 billion in long-term debt and lease
obligations as of the end of last year.
In January, The Wall Street Journal reported that Brentwood,
Tenn.-based Brookdale was holding talks with Blackstone and others
about a sale. When Brookdale reported earnings this week, the
company confirmed that it's exploring a possible deal. "I can
report that our board and management team working together with our
legal and financial advisers are in a process of exploring options
and alternatives to create and enhance shareholder value,"
Executive Chairman Dan Decker said on a conference call with
analysts and investors.
It isn't clear if there are other suitors, and Blackstone could
still re-enter the fray. It's also possible there will be no deal
with Ventas or anyone else.
Ventas, based in Chicago, is one of the biggest U.S. health
care-focused real-estate investment trusts, with almost 1,300
senior housing and health-care properties in the U.S. Canada and
U.K. It had a market value of a $22 billion Thursday.
Brookdale is a big tenant of Ventas, with 140 properties leased
or managed as of the end of last year, representing about 5% of
revenue, according to Ventas's annual report. That could help put
Ventas in a better position to do a deal with Brookdale.
Write to Dana Mattioli at dana.mattioli@wsj.com and Dana
Cimilluca at dana.cimilluca@wsj.com
(END) Dow Jones Newswires
February 16, 2017 16:36 ET (21:36 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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