MENOMONEE FALLS, Wis. (AP) — TPG, a private investment firm, has agreed to pay about $280 million to acquire Assisted Living Concepts Inc. (NYSE:ALC), a senior living facility operator.
Assisted Living Concepts said Tuesday that TPG has agreed to pay $12 per Class A share and $12.90 per Class B share.
The Assisted Living Concepts board and a special committee that was reviewing the company's strategy have both approved the sale, the company said.
Shares of Assisted Living Concepts jumped $2.18, or 22.5 percent, to $11.88 in midday trading. The stock is down 45 percent since May 10, when the company said it would delay is first-quarter report because it had found possible irregularities related to leases.
Assisted Living Concepts runs 210 facilities in 20 states. The company has been reviewing its strategy and is trying to address operational problems that have hurt its admissions. It fired Laurie Bebo, the chief executive officer (CEO), at the end of May, and it hired Dr. Charles H. "Chip" Roadman II, a former surgeon general of the U.S. Air Force, as its interim CEO.
The company also took a loss over the first nine months of the year because of legal and regulatory costs, lease termination costs, and other charges. Its revenue fell 2 percent to $171.4 million over that period.
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