Brookdale Senior Living (BKD: $14.80, up 15%) shot higher yesterday on a report that it may be bought out. It was reported that the senior center company is in early discussions to sell all or parts of its company to private equity firm Blackstone (BX: $30), one of our favorites. The largest operator of senior living centers, Brookdale offers assisted living and other services to more than 100,000 residents in 1,000 communities across the United States.
The word on the Street describes the talks as early stage and complex and says there are many potential forms for a potential deal, such as the sale of the company's properties. Two hedge funds have been clamoring for this for two years.
Brookdale bought Emeritus Corporation in 2014, a very large deal that produced the nation's leader in senior living but, like other large acquisitions in Nashville's healthcare community in the past couple of years, proved difficult to integrate, pulling down the whole company.
BMR Take: We added the stock in April at $16.80 and it has been all downhill for the company and for the stock. We are very disappointed to say the least. We would suggest getting out now, before Blackstone sees the real light and decides not to invest.