Lutheran Senior
Services, a nonprofit that specializes in housing, care and supportive services
for older adults, and Diakon, a Lutheran organization that offers a continuum of senior lifestyle and health
care services as well as a range of services for children, families, and
adult individuals of all ages, have signed an agreement to bring senior
living operations and four life plan communities under LSS.
“We are two financially healthy, not-for-profit organizations coming together strategically in the interest of better serving older adults,” said Adam Marles, LSS president and chief executive officer. “Dynamics in senior living are changing rapidly and provider organizations must adapt and evolve to ensure the best for those we serve. This step does that while also creating additional scale that will enable Lutheran Senior Services to compete for talent, add specialty positions, create career opportunities for our team, increase our purchasing/negotiating power – and so much more.”
This agreement will result in LSS becoming the 12th largest nonprofit senior living organization in the country with annual revenues of nearly $350 million and 12 life plan, one assisted living and nine senior affordable housing communities as well as home-based services in three states (Missouri, Illinois and Pennsylvania).
“This was a
strategic decision made by both our organizations,” said Scott Habecker, Diakon
president and chief executive officer. “This creates a larger senior living
business with an even greater competitive advantage, while also allowing Diakon
to focus our resources on the growth of our diversified portfolio of affordable
senior housing and children and family services.”
LSS currently
has around 2,800 team members and 4,000 residents, while Diakon Senior Living
has more than 700 team members and 1,300 residents. Combined, LSS will serve
nearly 15,000 older adults through 12 life plan,
one assisted living and nine senior affordable housing communities as well as
home-based services in three states – Missouri, Illinois and Pennsylvania.
“We’re excited
to welcome Diakon Senior Living family into LSS and to expand our geographic
footprint into Pennsylvania,” adds Marles. “We were fortunate to have found a
like-minded partner in Diakon. They are a strong operator in senior living with
scale in their region, a shared emphasis on quality care, a similar
people-centric culture and a strong financial footing.”
The transaction
is pending regulatory approvals with an anticipated closing sometime this
summer.
