ABHOW and be.group have announced plans to affiliate their companies, creating one of the largest nonprofit senior-living organizations in the nation.
The companies have a combined 4,491 affordable housing units in 60 communities across several states.
“We are affiliating
to better serve older adults,” said David Ferguson, CEO of ABHOW, in a
statement. “We believe a combined organization will have greater strength,
stability, scale, and resources to meet the changing needs of a growing senior-living
market.”
When the affiliation is finalized, Ferguson will become executive adviser to
aid in the transition until his official retirement from the Pleasanton, Calif.–based ABHOW in early
2017 after 25 years of service. John Cochrane, be.group CEO, will assume
leadership of the combined organization.
“ABHOW and be.group have worked together for many years in our state and
national associations, and our missions have united us," said Cochrane,
who has led the Glendale, Calif. –based organization since 2009.
In announcing the move, officials noted that both organizations are financially
and operationally strong. They said they see “the affiliation as a wise
course given the nation's burgeoning senior population, demand for affordable
housing, and changes in health-care delivery.”
The move must be approved by several state agencies. During this review period, the two companies will conduct due diligence around finances, operations, and development plans. Upon regulatory approval, the two companies will affiliate. The companies expect the process to be finalized in early 2016.
Sometime in the future, ABHOW and be.group may request regulatory approval of a merger, which would combine the two organizations into one corporate entity. Any decision to merge would be subject to further refinement and agreement during the affiliation period.
At the start of the year, ABHOW reorganized its affordable housing division. Its subsidiary, Beacon Communities, acquired Seattle-based Beacon Development Group, an affordable housing consulting firm that works with developers in Washington.
Founded in 1949, ABHOW is widely known for its pioneering leadership in senior housing and health care. The company serves 6,200 residents in 50 retirement communities in Arizona, California, Idaho, Nevada, Oklahoma, and Washington and employs more than 2,400 team members.
Established in 1955, be.group serves nearly 4,000 residents across 34 communities and employs more than 1,300 team members.
