Publicly traded senior living company AlerisLife is being sold to a firm majority owned and controlled by Adam Portnoy, who is also CEO of the RMR Group.
AlerisLife Inc. (Nasdaq: ALR) this morning announced it has entered into a definitive agreement with the firm, ABP Acquisition, to sell the company for $1.31 per share in cash, or approximately $43.8 million.
According to ABP, the sale represents an 85% premium over AlerisLife’s average 30-day stock price, $0.71 per share.
ABP and its affiliates currently own about 6.1% of AlerisLife’s stock. The company noted that Diversified Healthcare Trust (Nasdaq: DHC), which holds approximately 31.9% of AlerisLife’s stock and is landlord to many of its communities, has agreed to tender its shares in the offer.
Portnoy is also one of AlerisLife’s managing directors and the chair of its board of directors.
A special committee composed of independent directors recommended the deal and engaged Citigroup Global Markets Inc. as its financial advisor, according to AlerisLife.
The transaction is expected to be completed in the first quarter of 2023.
AlerisLife’s ongoing evolution
AlerisLife has undergone several changes over the years that have substantially changed the makeup of the company and its leadership.
A little more than one year ago, the company rebranded as AlerisLife in an effort to better reflect the company and its growing focus on lifestyle services. Months later in May, Katie Potter resigned as CEO, and not long after Jeff Leer permanently took the role.
Last August, the company’s leaders announced a new plan to cut some corporate overhead positions as part of a restructuring plan. Two months later, the company named Philip Benjamson to the role of senior VP and COO.
RMR and ABP’s Portnoy ascended to the managing director role at AlerisLife — then called Five Star Senior Living — in 2018 after the death of RMR Founder and former Five Star Managing Director Barry Portnoy.
In 2016, Five Star was a target of the co-founders of senior living operator Senior Star, who endeavored to have a bigger ownership stake in the company. Five Star ultimately fended off those efforts, but not after a contentious back-and-forth.
This is a developing story that will be updated.
The post [Updated] AlerisLife to be Acquired by Portnoy-Led Firm for $44M appeared first on Senior Housing News.
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