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Company Overview
Diakon Lutheran Social Ministries (“Diakon”) has been a premier operator in the senior living industry since 1940. Diakon offers a continuum of senior lifestyle and health care services, including continuing care retirement communities and a range of programs for children, youths, families, adults and entire communities in Pennsylvania and Maryland. Annually, Diakon’s programs directly serve more than 70,000 people.
Situation
Diakon determined that the sale of four of its continuing care retirement communities (the “CCRCs”) would facilitate a broader senior living reinvestment and capital allocation plan focused on reducing the organization’s reliance on government reimbursement while investing greater resources in independent living expansions and building a more contemporary continuum of care in Diakon’s remaining markets. The four CCRCs, in aggregate, include 153 independent living accommodations, 229 personal care/assisted living apartments and 483 skilled nursing beds.
Solution
Diakon engaged Griffin as its exclusive investment banker to solicit offers to purchase the CCRCs. Griffin managed a competitive sale process involving a select group of strategic and financial buyers. The process generated multiple proposals to purchase the CCRCs, and ultimately resulted in the communities being sold to affiliates of Lion Healthcare Management, a New Jersey-based privately owned company with a significant senior living industry presence in the Mid-Atlantic region and various other parts of the United States.
Three of the CCRCs, which are located in Pennsylvania, have been sold effective December 1, 2021. The sale of the remaining CCRCs located in Maryland is expected to be completed following regulatory review.
For more information on this transaction, please contact C. Mitchell Smith, Vice President, at 610.478.2043.
