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Funds connected to a New York private equity firm are investing in Bonita Springs-based Discovery Senior Living in a recapitalization of the $455 million company.
The private equity firm, Lee Equity Partners, was joined by Coastwood Senior Housing Partners in the investment in Discovery, according to a statement. Financial terms of the investment weren’t disclosed. Coastwood Chairman Dan Decker will chair the Discovery Senior Living board upon closing, the release adds.
Discovery Senior Living currently owns and operates a national, multi-branded portfolio of more than 110 communities in 19 states. The company, founded in 1998, had $445.66 million in revenue in 2021, up 26.61% from $351.1 million in 2020.
“This strategic recapitalization purposefully combines the strengths and successful experiences of three companies and the resultant innovation focused efforts will allow the acceleration of Discovery’s ability to execute its vision of creating a scaled company that outperforms the marketplace, addresses some of the legacy industry paradigms and of course focuses on delivering a customized and holistic resident and team member experience,” Discovery CEO Richard Hutchinson says in the statement.
The family of companies in the agreement include Discovery Management Group, Morada Senior Living, TerraBella Senior Living, Discovery Development Group, Discovery Design Concepts, Discovery Marketing Group, and Discovery At Home, a Medicare-certified home healthcare company. The transaction, subject to customary closing conditions and regulatory approvals, is expected to close in the fourth quarter of 2022.
“Discovery Senior Living represents the ideal platform to build a leading national senior living operator due to the strength of its team, centralized services and national and regional brand operating structure,” Lee Equity Partners Partner Yoo Jin Kim says in the statement. “The secular growth tailwinds and consolidation opportunity within senior housing management are very similar to those we observed in the third-party hotel management sector with our Aimbridge Hospitality investment. We seek to replicate that success in partnership with Richard Hutchinson and the Discovery team, as well as Dan Decker and the Coastwood team.”
Lee Equity Partners targets equity investments of $50 million to $150 million in middle-market control buyouts and growth capital financings in companies with enterprise values of $100 million to $500 million located primarily in the United States. It invests in a range of industries, including business services, financial services and health care services.
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