HealthCare REIT to buy Sunrise Senior for $845 mln
The third-largest health care real estate investment trust by market value HealthCare REIT Inc has agreed to buy Sunrise Senior Living Inc for about $845 million to expand its assisted-living communities.
Health Care REIT will be paying $14.50 a share in cash, a 62% premium over Sunrise’s closing share price of $8.93 yesterday.
As per the data compiled by Bloomberg, Sunrise has about 58.3 million shares outstanding. The transaction reflects the real estate value of about $1.9 billion, Toledo, Ohio-based Health Care REIT said.
Health Care REIT said in a quarterly regulatory filing, “Demand for assisted-living and senior housing is expected to rise as the U.S. population ages. The number of residents aged 65 and more will increase 79% through 2030.”
The acquisition of McLean, Virginia-based Sunrise will expand HealthCare REIT’s presence in major markets like New York, Los Angeles, Washington and Philadelphia.
U.S. healthcare REIT has also announced deals worth $3.44 billion in the last 12 months at an average premium of about 13%.
The shares of Sunrise rose 60% to $14.26 at the close in New York and share of Health Care REIT dipped 2.7% to $58.14.
The acquisition includes Sunrise’s 20 wholly owned senior housing communities in the U.S. and Canada and also the company’s interest in joint ventures that own 105 communities and 27 of them in the UK.
George L Chapman, Health Care REIT’s Chairman and CEO said, “There are very few opportunities of this scale and quality.” He also said, “Senior housing is undervalued relative to other classes of real estate.”
Post transaction, Health Care REIT will own more than 58,000 units of senior housing.
The deal increases the share of the landlord’s business that is not dependent on government reimbursements and lowers the average age of its properties to 12 years from 13.
The Sunrise deal is conditioned on the approval of its shareholders and is scheduled to be completed in first half of 2013. KeyBanc Capital Markets and Goldman Sachs will serve as financial advisors on transaction and Watchtell Lipton Rosen & Katz was the legal adviser to Sunrise.
HealthCare REIT completed $1.1 billion of acquisitions in the second quarter, including the $509.5 million deal with Chartwell Seniors Housing for properties in Canada.
Bachem turns 50 - a timeline
Bachem, a supplier to pharmaceutical and biotechnology companies worldwide, is celebrating its 50th anniversary this month. We take a look at the Swiss company's history.
1971 - beginnings
Bachem is founded by entrepreneur Peter Grogg in Liestal, a small town near Basel in Switzerland. Grogg started the firm with just two employees, and with a focus on peptide synthesis - peptides are composed of amino acids that have a variety of functions treating health conditions such as cancer and diabetes.
1977 - 1981 - early growth
Bachem moves its headquarters to the Swiss town of Bubendorf, with eight employees. In 1978 the company produces peptides for use in medicines for the first time. In 1981 production capacity triples and the workforce grows to 150.
1987 - 1996 - worldwide expansion
The company expands into the US with Bachem Bioscience, Inc. in Philadelphia. To strengthen its presence in Europe, Bachem opens sales and marketing centres in Germany in 1988.
Further sales centres open in France in 1993. By 1995 the company employs 190 people. In 1996 it acquires the second largest manufacturer of peptides in the world and forms Bachem California with a site in Torrance.
1998 - 2003 - Bachem goes public
Bachem company goes public and lists shares on the Swiss Stock Exchange. Further acquisitions include Peninsula Laboratories, Inc, based in California, and Sochinaz SA, a Swiss-based manufacturer of active pharmaceutical ingredients. By 2001, the company has 500 employees and sales reach 141 million CHF.
In 2003 the organisation is given a new legal holding structure to support its continued growth, which remains in place to this day.
2007 - 2013 - acquisitions
Bachem acquires a brand by Merck Biosciences for ready-to-use clinical trial materials and related services.
In 2013, together with GlyTech, Inc. Bachem announces the development of a new amino acid that can help to treat multiple sclerosis, with a world market of more than $4 billion.
In 2015 it acquires the American Peptide Company (APC), which becomes integrated into Bachem Americas.
2016 - 2019 - a global leader
In 2016 the group opens a new building dedicated to R&D projects and small series production in Bubendorf. With a total of 1,022 employees, the workforce exceeds the 1,000 mark for the first time in the company’s history. Sales are over the 200 million mark for the first time at 236.5 million CHF.
Bachem expands into Asia with the establishment of a new company in Tokyo called Bachem Japan K.K.
By 2019 Bachem has a growing oligonucleotide portfolio - these are DNA molecules used in genetic testing, research, and forensics. It is hoped this will become a significant product range in the future.
2020 - COVID-19
Despite the COVID-19 pandemic, Bachem secures its supply of active ingredients, and even increases it in critical areas. Sales exceed the 400 million Swiss franc mark for the first time, and 272 new employees are hired.
2021 - a milestone anniversary
Bachem celebrates its 50th anniversary and position as a global leader in the manufacture of peptides. While it remains headquartered in Bubendorf, the company employs 1,500 people at six locations worldwide. In the next five years there are plans to continue expanding.
Commemorating the company's anniversary, Kuno Sommer, Chairman of the Board of Directors, said: "Bachem's exceptional success story from a small laboratory to a global market leader is closely linked to Peter Grogg's values, and has been shaped by innovation, consistent quality and cost awareness, as well as by entrepreneurial vision."