TOLEDO, Ohio (AP) — Health Care REIT Inc. said Friday that as part of its acquisition of Sunrise Senior Living Inc., it has agreed to sell Sunrise's management company business to a group of health care and real estate investment firms for about $130 million.
The group includes affiliates of Kohlberg Kravis Roberts & Co., Beecken Petty O'Keefe & Co. and Coastwood Senior Housing Partners LLC. Health Care REIT said it will invest about $26 million for a 20 percent interest in the new entity.
The sale is set to close immediately before Health Care REIT's acquisition of Sunrise Senior Living.
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Health Care REIT said last month that it would buy Sunrise in an all-cash deal worth about $1 billion. Under the terms of that agreement, the Toledo, Ohio-based company will pay $14.50 for each share of McLean, Va.-based Sunrise.
Sunrise owns 20 senior housing communities in the US and Canada. It also has an interest in joint ventures that own 105 communities, including 27 in the United Kingdom. The company employs about 31,600 people.
The management business being sold includes existing Sunrise management contracts covering 282 communities, including the 125 communities to be acquired by Health Care REIT, leasehold interests in 15 communities and 12 development parcels.
Health Care REIT said it expects to use the proceeds from the sale of the management business to partially fund its acquisition of Sunrise.
Health Care REIT shares rose 35 cents to $59.71 in morning trading. Its shares peaked at $62.80 in early August, and traded as low as $43.65 on October.
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