Senior health care firm operator Trilogy sold in $1.2B deal

Trilogy Health Services LLC, a Louisville-based company that operates more than 70 senior-living facilities in Indiana, is being acquired in a $1.1 billion deal, the company announced Tuesday.

Griffin-American Healthcare REIT III Inc., a closely held real estate investment trust, agreed to buy Trilogy parent Trilogy Investors LLC in a joint venture with NorthStar Healthcare Income Inc. to gain senior assisted-living campuses across the Midwest.

After the transaction, Irvine, California-based Griffin-American will own 70 percent of the enlarged venture and will act as its manager. NorthStar will hold the remainder.

Trilogy, founded in 1997, operates 96 senior health and hospitality facilities in Indiana, Ohio, Michigan and Kentucky, which offer residents assisted living, memory care and nursing services.

The company has at least a 14 properties in central Indiana, including two in Indianapolis: Arlington Place Health Campus, a 63,935-square-foot center at 1635 N. Arlington Avenue; and Clearvista Lake Health Campus in Castleton.

Other Trilogy properties in the area can be found in Carmel, Noblesville, Westfield, Avon, Lebanon, Anderson, Greenfield, Mooresville and Shelbyville.

Trilogy’s operations also include an institutional pharmacy, PCA Pharmacy, with four locations, and a rehabilitative services company, Paragon Rehabilitation. Trilogy has more than 13,500 employees companywide.

Trilogy’s management team, led by founder and CEO Randy Bufford, will maintain an investment of about $24 million in Trilogy, the company said.

The deal will almost double the size of Griffin-American to about $2 billion in real estate and real estate-related investments, Chairman Jeff Hanson said.

CS Capital Advisors LLC acted as financial advisor to Griffin-American and NorthStar. Paul, Weiss, Rifkind, Wharton & Garrison LLP served as lead legal advisors to the joint venture, while Morris, Manning & Martin, LLP acted as legal advisors to Griffin-American.