Ventas In Talks to Buy Part or All of Brookdale Senior Living

By Dana Mattioli and Dana Cimilluca 

Healthcare-facility owner Ventas Inc. is in talks to acquire part or all of Brookdale Senior Living Inc. after another big suitor cooled on its bid for the nation's largest operator of senior-living centers.

Ventas is vying for Brookdale after another leading contender to make a deal with the company, private-equity firm Blackstone Group LP, lost interest, according to people familiar with the matter. Brookdale had a market value of nearly $3 billion Thursday afternoon as well as nearly $6 billion in long-term debt and lease obligations as of the end of last year.

In January, The Wall Street Journal reported that Brentwood, Tenn.-based Brookdale was holding talks with Blackstone and others about a sale. When Brookdale reported earnings this week, the company confirmed that it's exploring a possible deal. "I can report that our board and management team working together with our legal and financial advisers are in a process of exploring options and alternatives to create and enhance shareholder value," Executive Chairman Dan Decker said on a conference call with analysts and investors.

It isn't clear if there are other suitors, and Blackstone could still re-enter the fray. It's also possible there will be no deal with Ventas or anyone else.

Ventas, based in Chicago, is one of the biggest U.S. health care-focused real-estate investment trusts, with almost 1,300 senior housing and health-care properties in the U.S. Canada and U.K. It had a market value of a $22 billion Thursday.

Brookdale is a big tenant of Ventas, with 140 properties leased or managed as of the end of last year, representing about 5% of revenue, according to Ventas's annual report. That could help put Ventas in a better position to do a deal with Brookdale.

Write to Dana Mattioli at [e-mail] and Dana Cimilluca at [e-mail]

(END) Dow Jones Newswires

February 16, 2017 16:36 ET (21:36 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.