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The merger of American Baptist Homes of the West (ABHOW) and BeGroup, given the green light from regulators last month, will create California’s largest and the nation’s sixth-largest senior living nonprofit.
The two entities will operate under the corporate umbrella of Cornerstone Affiliates, according to the San Francisco Business Times. Cornerstone is a holding company with interests in senior care, affordable housing and a for-profit sales and marketing group.
BeGroup CEO John Cochrane will assume responsibility for both senior living companies while ABHOW head Dave Ferguson plans to retire in 2017 after a period of transition.
The new entity holds $1.5B in assets and generates $360M in revenue using 2015 figures. Cornerstone will assume care for approximately 10,000 seniors across 84 sites across the Western states.
A recent CBRE report showed senior housing companies had saturated the market. The resulting downward price pressure from overbuilding could drive consolidation across all segments of the senior housing sector. [SFBT]
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