TPG To Acquire Assisted Living Concepts for $278M

MENOMONEE FALLS, WI—Private Investment Firm TPG has agreed to acquire locally based Assisted Living Concepts Inc., which operates 210 seniors living communities in 20 states, for about $278 million.

According to the agreement signed Tuesday, ALC stockholders will receive $12 in cash for each share of Class A common stock and holders of ALC’s Class B common stock will receive $12.90 in cash per share. ALC’s Board of Directors and a Special Committee of the Board of Directors unanimously agreed to the purchase.

The company’s stock traded as high as more than $30 per share in 2007. However, the stock dropped to less than $9 per share this past summer after the firm fired its CEO and announced it was delaying reports due to possible irregularities.

Mel Rhinelander, chairman of the Special Committee, says in a statement that the boards are very pleased with the pending transaction. “The acquisition represents a significant premium for our shareholders, and we also believe that TPG will help continue ALC’s focus on high quality service and care for our residents.”

Citigroup Global Markets Inc. acted as financial advisor to the Special Committee, and Cravath, Swaine & Moore LLP acted as independent legal counsel to the Special Committee. Goldman, Sachs & Co. acted as financial advisor to TPG, and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor to TPG.

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