Assisted Living Concepts (ALC),which operates 210 seniors living communities in 20 states, has entered into a definitive agreement to be acquired by TPG, a private investment firm. The total purchase price is about $275 million, according to a Wall Street Journal report. Under the terms of the agreement, ALC stockholders will receive $12.00 in cash for each share of Class A common stock. Citigroup Global Markets were Assisted Living's financial advisors while Goldman Sachs & Co advised TPG.
"We are very pleased with the transaction," Mel Rhinelander, chairman of the special committee set up by ALC's board, said in a statement. "The acquisition represents a significant premium for our shareholders, and we also believe that TPG will help continue ALC's focus on high quality service and care for our residents."
ALC's occupancy rates average around 62%, compared with a national average of about 90%, according to people familiar with the company. Tripp Levy PLLC, a national law firm that specializes in mergers & acquisitions, announced this week that it has been retained to represent shareholders of Assisted Living Concepts in an investigation concerning whether the board of directors of ALC engaged in a full and fair auction for the company obtaining the highest price possible for shareholders while not obtaining personal benefits for themselves in selling to this investment firm at this price. ALC is controlled by Thornridge Holdings, a private Canadian company.
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