Sunrise wraps up $76M purchase of hospice provider
With the purchase, McLean, Va.-based Sunrise, an operator of more than 420 senior-living communities in the United States and abroad, enters the fast-growing hospice industry, expected to reach more than $10 billion in revenue this year.
Trinity is one of the largest providers of hospice services in the United States, operating 24 hospice programs in nine states, though none in the Washington area. The company previously was owned by KRG Capital Partners, a Denver-based private equity firm.
“Our goal is to grow Trinity nationally by positioning it in the top 30 major U.S. markets where Sunrise communities currently operate,” said Sunrise Chief Operating Officer Tiffany Tomasso.
In this region, Sunrise has 49 communities in operation or under development, according to the company’s Web site. The company operates seven senior living communities in Greater Baltimore.
Outside the U.S., the company’s communities are in Canada, Germany and the United Kingdom. The combined capacity is about 50,000 residents.
Sunrise employs about 40,000 people.
The company says Dino Eliopoulos, formerly the CFO and chief operating officer of Trinity, has been named president of the hospice business, now a subsidiary of Sunrise (NYSE: SRZ).
The purchase price was $68 million, plus $5 million for cash and working capital items and $3 million in transaction costs.
Trinity is expected to generate revenue of $60 million this year, Sunrise says.
Sunrise said July 31 that it will restate its financial reports for the past three years, a move expected to reduce net income dating back to 1999 by $60 million to $110 million. However, Sunrise says it expects to recapture most of the lost profits in 2006 and 2007.