Sunrise Assisted Living, McLean, Va., signed a definitive agreement to buy Marriott Senior Living Services from Marriott International for $89 million in cash and stock and said it would rename itself Sunrise Senior Living. The deal would more than double the assisted-living company's bed capacity to 39,500 and is expected to close by the end of the first quarter, subject to regulatory approval. Under terms of the agreement, Sunrise would take over Marriott Senior Living's 120 management contracts and six operating leases and absorb the company's 15,000 employees. Officials said the acquisition would speed Sunrise's transition to a management-services company, hopefully resulting in "more predictable and stable" revenue and earnings. Sunrise President Thomas Newell said in a written statement that the company has a "healthy respect" for the challenge of integrating the acquisition and has budgeted $26 million over the next two years for information technology and other expenses to facilitate integration. -- by Julie Piotrowski
Sunrise to acquire Marriott Senior Living
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