LOUISVILLE, KY - Atria Senior Living, Inc. and its subsidiaries (collectively, Atria), a newly formed senior living management company led by the same management team that built Atria Senior Living Group, Inc. (ASLG), today announced the entry into a long-term management agreement with Ventas, Inc. (NYSE: VTR). Pursuant to the management agreement, Atria will manage the portfolio of 118 senior living communities acquired by Ventas today. Atria is also managing communities for other owners and is positioned to continue to grow upon ASLG's legacy as one of the premier senior housing operators in the country.
Ventas acquired the 118 community portfolio through mergers of ASLG, and certain other companies that owned communities previously managed by ASLG, with Ventas subsidiaries in exchange for total consideration valued at more than $3.1 billion as of the closing, including approximately 25 million shares of Ventas common stock and $1.6 billion in cash and assumption of debt. Immediately prior to such mergers, Atria was spun-off to the stockholders of the acquired companies.
The former owners of ASLG and of certain senior living communities formerly managed by ASLG, are private equity funds managed by Lazard Real Estate Partners and affiliates (LREP). These funds own a majority interest in Atria. Atria's management team will become owners of the company as well. Matthew J. Lustig, Atria's Chairman, is also expected to be appointed as a member of Ventas' Board of Directors shortly following closing.
"We have been working closely with Ventas to finalize this transaction, and we are so pleased that today we can announce its completion," said John A. Moore, Atria's Chief Executive Officer. "This has been a complicated process, especially the structure of the transaction and the portfolio location in high barrier-to-entry real estate markets that have complex regulatory frameworks, but I believe that our ability to work together with the Ventas team to ensure a smooth transition is a great sign of things to come. We couldn't be more excited about what the future holds."
"This acquisition establishes Ventas as the largest owner of senior living communities in the United States, and positions our company for substantial future growth," said Ventas Chairman and Chief Executive Officer Debra A. Cafaro. "We are excited about the fact that our collaboration with Atria aligns us with a company that boasts an outstanding operations infrastructure, an experienced management team and employees who are committed to providing excellent care to the residents they serve."
Based in Louisville, Kentucky, Atria is one of the nation's leading providers of independent living, assisted living and memory care services, managing more than 120 communities located in 27 states. Atria branded communities are home to approximately 13,000 residents, and employ more than 8,000 dedicated employees nationwide.
Ventas, Inc., an S&P 500 company, is a leading healthcare real estate investment trust with a diverse portfolio of more than 700 assets in 44 states (including the District of Columbia) and two Canadian provinces. Through its Lillibridge subsidiary, Ventas provides management, leasing, marketing, facility development and advisory services to highly-rated hospitals and health systems throughout the United States.
Source: Atria Senior Living