Sonida Senior Living has successfully completed a significant $1.8 billion merger with CNL Healthcare Properties (CHP). This strategic combination propels Sonida to become the eighth largest owner of senior living properties in the United States, more than doubling its size and expanding its portfolio to 153 communities with approximately 14,700 units.
The cash and stock transaction, valued at approximately $1.8 billion, sees Sonida acquire 100% of CHP. The combined entity boasts a portfolio that is 92% private-pay, with a unit breakdown of 49% assisted living, 34% independent living, 16% memory care, and 1% skilled nursing. Geographically, Texas, Ohio, Indiana, Florida, and Wisconsin will represent the states with the largest presence for the merged company.
Sonida anticipates that the merger will unlock substantial operating synergies, drive future net operating income (NOI) growth through operational improvements and portfolio optimization, increase share liquidity, and broaden access to capital. The company has secured permanent debt financing of $930 million, with an option to increase borrowings up to $1.25 billion, replacing existing facilities. This financial restructuring aims to strengthen the balance sheet and support ongoing growth strategies.
Brandon Ribar will continue to lead the combined company as President and CEO. The Sonida Board of Directors will expand to nine members, including two appointees from CHP, Stephen Mauldin and J. Chandler Martin. Michael Simanovsky has been appointed as the new Board Chairman. Sonida is committed to disciplined growth, both organic and inorganic, while maintaining its core objective of providing high-quality care and services to its residents.
First announced in November, the merger’s completion was within the expected timeframe of late first quarter or early second quarter. Stockholder approvals from both companies were secured, with approximately 88.9% of Sonida’s voting power supporting the transaction. The deal values each share of CHP common stock at $7.22, comprising cash and Sonida common stock. The combined company’s common stock will continue to trade under Sonida’s existing ticker symbol, SNDA, on the New York Stock Exchange.