GE gets into the 'senior living' market with new deal
The acquisition of six Florida senior living communities in a joint venture between GE and Sunrise was completed today.
GE Healthcare Financial Services, a subsidiary of General Electric Company (NYSE: GE), partnered up with Sunrise Senior Living Inc. (NYSE: SRZ) and together they bought six Florida senior living communities for $460 million. The deal included assuming $134 million in debt and $10 million in transaction costs.
While GE funded about $117 million of the $460 million purchase price, Sunrise only contributed some $39 million and the rest was financed. Yet Sunrise brings the experience and is set to manage the properties. Sunrise will have a 25% stake in the venture with GE having the remaining 75%.
The communities purchased can house about 2,300 residents and have annual revenues of more than $65 million. With this move, GE is trying to further capitalize on what is believed to be one of the future growth businesses as the baby-boomers age — especially the independent living market one.