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American Retirement Corporation to Acquire Kansas City Communities

Posted on: Wednesday, 29 March 2006, 09:01 CST

American Retirement Corporation (NYSE: ACR) ("ARC" or the "Company"), a leading national provider of senior living housing and care, today announced that it has entered into a definitive asset purchase agreement to acquire two communities in Kansas City, Kansas. The communities consist of 44 assisted living units, 54 Alzheimer's units and 106 skilled nursing beds.

The aggregate purchase price for the communities is $29.5 million, which is subject to customary closing adjustments. One community has 106 skilled nursing beds, including 30 Alzheimer's skilled nursing beds that opened in February 2006, and 44 assisted living units. The other community has 54 Alzheimer's units. The communities' revenue has a current run rate of approximately $14 million and consists solely of private pay and Medicare revenue. Revenue per unit is approximately $5,700 per occupied unit per month and occupancy ended February at 87%.

"These two upscale communities will be great additions to the two other communities that we recently acquired in the Kansas City area," said Bill Sheriff, Chairman, President and CEO of the Company. "Our residents will have available the full continuum of care of independent living, assisted living, Alzheimer's care and skilled nursing across the four communities in fairly close proximity. The two communities will increase our local market platform and will benefit from our in-house ancillary services like therapy and home health. Their design is extremely attractive and innovative, and we have agreed with the sellers to work together to develop expansions of our existing portfolio or new communities incorporating their concepts."

The consummation of the transaction is subject to receipt of required regulatory approvals and satisfaction of certain closing conditions and contingencies, including satisfactory completion of due diligence. The transaction is expected to close no later than April 1, 2006. The Company filed a Form 8-K with the SEC which provided further information concerning the transaction.

Company Profile

American Retirement Corporation is a national senior living and health care services provider offering a broad range of care and services to seniors, including independent living, assisted living, skilled nursing and Alzheimer's care. Established in 1978, the Company believes that it is a leader in the operation and management of senior living communities, including independent living communities, continuing care retirement communities, free-standing assisted living communities, and the development of specialized care programs for residents with Alzheimer's and other forms of dementia. The Company's operating philosophy is to enhance the lives of seniors by striving to provide the highest quality of care and services in well-operated communities designed to improve and protect the quality of life, independence, personal freedom, privacy, spirit, and dignity of its residents. The Company currently operates 80 senior living communities in 19 states, with an aggregate unit capacity of approximately 15,200 units and resident capacity of approximately 16,900. The Company owns 31 communities (including 13 communities in joint ventures), leases 43 communities, and manages 6 communities pursuant to management agreements.

Safe Harbor Statement

Statements contained in this press release and statements made by or on behalf of ARC relating hereto may be deemed to constitute forward-looking information made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include all statements that are not historical statements of fact and those regarding the intent, belief or expectations of the Company or its management, including, without limitation, all statements regarding the Company's expectations concerning the consummation of the acquisition and the future financial performance of the communities and their effect on the Company's financial performance. These forward-looking statements may be affected by certain risks and uncertainties, including without limitation the following: (i) the Company's ability to satisfy all of the closing conditions and contingencies necessary to consummate the acquisition, (ii) the Company's ability to integrate the communities into the Company's operations, (iii) the Company's ability to re-lease units at the community, (iv) the risks associated with adverse market conditions of the senior housing industry and the United States economy in general, (v) the risk associated with the Company's debt and lease obligations, and (vi) the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2005 under the caption "Risk Factors" and in the Company's other filings with the SEC. In light of the significant uncertainties inherent in the forward-looking statements included herein, the Company's actual results could differ materially from such forward-looking statements. The Company does not undertake any obligation to publicly release any revisions to any forward-looking statements contained herein to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events.

Source: Business Wire

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