A Medical Device Daily
Sunrise Senior Living (McLean, Virginia) said it has received $40 million in buyout and transition fees from Five Star Quality Care (Newton, Massachusetts) for the buyout of seven management contracts. Sunrise offers personalized senior living services, including care for individuals with Alzheimer’s and other forms of memory loss, as well as nursing, rehabilitative and hospice care.
Sunrise acquired the contracts as part of its acquisition of Marriott Senior Living Services in 2003 and allocated about $11.7 million to these contracts out of the total $150 million purchase price. Sunrise said it has received $213 million from Five Star for the buyout of 30 management contracts.
Sunrise received gross management fees of about $5.3 million under these seven contracts in 2005. Sunrise said it will recognize “substantial” income from this transaction, net of certain transaction costs, in the fourth quarter of 2006.
Sunrise employs more than 40,000 people. As of Sept. 30 it operated 436 communities in the U.S., Canada, Germany and the UK with a capacity for more than 50,000 residents. Sunrise also had 46 communities under construction in these countries, with a combined capacity for more than 6,000 additional residents.
In other grants/contracts news:
Clearant (Los Angeles) reported signing a multi-year agreement with Tissue BanksInternational (TBI; Baltimore) to supply its Clearant Process sports medicine implants. The agreement allows Clearant to participate in a $350 million per year market, the company said.
The Clearant Process is a sterilization technology designed to eliminate the risk of infection in bone and soft-tissue allograft implants while preserving functional viability. This method is intended to inactivate all types of viruses, including HIV, and Hepatitis A and C, and achieve a level of microbial sterility that meets or exceeds the level of medical device sterility.
Clearant began to distribute Clearant Process sterile implants directly to surgeons, hospitals and clinics in June 2006. Clearant continues to license the Clearant Process and provides its sterilization services to tissue banks and other biological products manufacturers.
TBI is a non-profit provider of tissues for orthopedic, spinal, sports medicine, and urologic surgery.