Erickson Retirement Communities and Redwood Capital Sign Agreement
BALTIMORE (December 23, 2009)—Erickson Retirement Communities, a leading developer and manager of communities that enable seniors to live life to the fullest, today announced that it has selected Redwood Capital Investments LLC as the successful bidder to acquire substantially all the assets of the company, subject to court approval. Terms of the transaction were not disclosed.
Erickson signed a definitive agreement with Redwood Capital, a Baltimore-based company, in October because the organization was a particularly strong candidate. As its continued interest in Erickson indicates, Redwood recognizes that Erickson has tremendous strengths, including a strong brand that is recognized for quality, value and the enhanced lifestyle residents experience every day.
“We are pleased that the interests of Redwood Capital are well aligned with Erickson’s long-term growth strategy and the interests of all community residents,” said John C. Erickson, founder and executive chairman of Erickson. “Redwood Capital has the capital resources to address Erickson’s long-term needs and has assured us they support the actions Erickson feels are necessary to strengthen the company immediately and for the future. This sale marks a company milestone that creates numerous benefits for all members of the Erickson Community.”
Jim Davis, who controls Redwood Capital, said, “Erickson Retirement Communities has a noble mission, a time-tested product, industry-leading customer satisfaction and tremendous opportunities for growth. Redwood Capital shares Erickson’s vision for improving the lives of seniors and we are excited to build on the legacy and success of this venerable brand.”
“The transition of Erickson’s ownership to Redwood Capital will promote the long-term stability of the developing communities National Senior Campuses sponsors,” said Ron Walker, Chairman of NSC. “We look forward to working with Erickson, under new ownership and with restructured finances, reorganized businesses and fresh capital to fulfill NSC’s mission of providing the highest quality service and lifestyle to our residents.”
Erickson Retirement Communities received two qualified bids for the purchase of the company when the bidding process closed on December 14, 2009, a testament to the fact that Erickson has tremendous strengths, including a strong brand that is recognized for quality, value and the enhanced lifestyle residents experience every day. Qualified bidders were permitted to participate in an auction that occurred on December 22, 2009.
Erickson and Redwood Capital will submit to the U.S. Bankruptcy Court in Dallas on December 23, 2009 an amended Plan and Disclosure Statement, and request that the court schedule hearings to approve a revised disclosure statement and to confirm any plan of reorganization (“confirmation hearing”). Once that hearing has concluded, Erickson and Redwood Capital can begin the process of completing all necessary actions to finalize the sale.