Brookdale Senior Living To Merge With Emeritus - Quick Facts

(RTTNews) - Brookdale Senior Living Inc. (BKD) Thursday announced a definitive merger agreement with Emeritus Corp. (ESC), wherein the combined companies will serve the growing market for senior living solutions as the single branded provider.

Under the agreement, Emeritus shareholders will receive 0.95 shares of Brookdale common stock in exchange for each share of their Emeritus common stock. The transaction value totals $2.8 billion, with the inclusion of $1.4 billion of Emeritus mortgage debt.

Based on the closing price of each company's common stock on February 19, this exchange ratio implies a 32 percent premium on Emeritus' shares.

The transaction expands Brookdale's unit capacity by more than two-thirds to a total of approximately 112,700 units in 1,161 communities in 46 states.

Andy Smith, Brookdale's Chief Executive Officer, said, "this strategic merger creates the first national, predominantly private-pay based, senior living solutions company. This combination will improve our ability to deliver the best, high quality solutions for the growing demographic of aging seniors and their families.