Sunrise to acquire CCRC developer for initial $46 million

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Sunrise Senior Living, a major international provider of senior living services, signed an agreement to acquire Greystone Communities Inc., a developer of continuing care retirement communities, for an estimated initial price of $46 million.

The aggregate purchase price for the transaction is estimated to be $45 million, plus approximately $1 million in transaction costs. Sunrise also will pay an additional $7.5 million if Greystone meets certain performance milestones in 2005, 2006 and 2007. The total potential purchase price is $52.5 million, plus transaction costs.

Greystone has more than 30 CCRCs in its portfolio, either open or in development. These are management contracts. Sunrise said it would not acquire any real estate in the transaction.

As a result of the transaction, Sunrise will have operations in Hawaii and Nevada for the first time.