February 26, 2013 / 2:35 PM / 5 years ago

UPDATE 1-TPG to take Assisted Living private for about $278 mln

* Says Class A shareholders to get $12.00 per share

* Says Class B shareholders to get $12.90 per share

* Shares rise 22 pct

Feb 26 (Reuters) - Assisted Living Concepts Inc said it agreed to be bought by investment firm TPG for about $278 million, months after the senior living residence operator said it was looking for buyers for several of its underperforming residences.

Retirement villages have been attractive acquisition targets over the last few years as an aging U.S. population has raised demand for residences that also provide nursing facilities.

Health Care REIT Inc bought Sunrise Senior Living Inc for about $845 million in August 2012, while HCP Inc said in October it was going to buy 133 senior housing communities from a joint venture between Emeritus Corp and Blackstone Real Estate Partners VI for $1.73 billion.

Assisted Living, which operates 210 senior living residences in 20 states, has been posting losses since the second quarter of 2012 as occupancy rates declined in its residences.

In November, the company reported a quarterly net loss of $4 million, about 30 percent lower than the previous year.

The company said at the time that it was looking for buyers for some of its underperforming residences and would use the proceeds to pay down its debt.

Under the deal with TPG, Assisted Living’s Class A shareholders will get $12 per share while Class B shareholders will get $12.90 per share.

The transaction values Assisted Living at about $278 million according to the number of Class A and Class B shares outstanding as on Oct. 31, 2012.

Shares of the company rose 22 percent to $11.85 in early trading on Tuesday on the New York Stock Exchange.

Citigroup Global Markets Inc were Assisted Living’s financial advisors, while Goldman Sachs & Co advised TPG.

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