Sonida Senior Living CEO Highlights $1.8B CNL Deal as a Catalyst for Transformational Growth

Sonida Senior Living (NYSE: SNDA) is set to embark on a significant merger with CNL Healthcare Properties in a deal valued at $1.8 billion. This merger positions Sonida as the eighth largest owner of senior living assets in the United States, based on unit count.

Upon completion of the merger, Sonida will boast a combined portfolio of 153 communities, which include independent living, assisted living, and memory care facilities. The newly formed entity will continue to trade under the ticker “SNDA” on the New York Stock Exchange.

This merger marks a pivotal moment for Sonida, effectively doubling the company’s operational footprint. According to a recent press release, the combined company will manage over 14,700 units, solidifying its status as a major player in the U.S. senior housing market.

In an interview with Senior Housing News following the announcement, Sonida Senior Living CEO Brandon Ribar described the merger as a “transformational” move for the Dallas-based owner-operator. “I really do think that this represents a transformational step in the growth plan for Sonida,” Ribar stated, emphasizing the company’s five-year turnaround and growth strategy.

Ribar believes that the acquisition of CNL will enable Sonida to accelerate its growth trajectory. The merger strategically links the two companies’ complementary footprints, enhancing Sonida’s presence in robust submarkets across the South, Southeast, and Midwest, while also expanding its reach into attractive markets like the Mountain West and Pacific Northwest.

“It’s going to create something that’s really attractive for those investors that are looking at the senior living space,” Ribar added, highlighting the current demand and demographic trends that prompted Sonida to pursue this acquisition.

“We’re at a point in time in the growth of the industry where things are accelerating,” Ribar noted. “To scale up and seize additional opportunities early in the cycle is crucial.” He also emphasized the importance of generating strong operating cash flow, which can be reinvested into the business and communities for future growth.

Internally, Sonida has been focused on improving staffing conditions within its communities and has implemented a leadership development program. Externally, the company has expanded its senior housing operating portfolio (SHOP) by adding multiple new communities. In 2024, Sonida acquired 20 communities and has made three acquisitions this year alone, further leaning into its acquisition strategy.

Ribar underscored the importance of effectively integrating and onboarding new communities to ensure strong operational performance in 2026 and beyond. The target closing date for the merger, pending shareholder votes from both Sonida and CNL, is projected for late Q1 or early Q2 of 2026.

“We want to share our vision for local and regional strength so leaders understand that Sonida isn’t coming in to make things uncomfortable,” Ribar explained. “Our goal is to enhance the resources they already have and work with current managers to identify strategic growth opportunities.”

After the merger, Ribar indicated that Sonida’s property mix would remain largely unchanged, with independent living comprising just over one-third of its holdings. Assisted living and memory care will represent 49% and 16% of the portfolio, respectively, allowing for continued operations in familiar markets and smooth integration of new properties.

This strategy aligns with Sonida’s “owner, operator, investor strategy,” which aims to leverage regional scale and diversification, allocate capital effectively, and drive performance while expanding the company’s future investment pipeline with new operating partners.

Following the merger, the two companies anticipate realizing cost synergies of approximately $16 million to $20 million in the year after closing, primarily through structural efficiencies and the termination of CNL Healthcare Corp.’s external advisory contract.

To fund the acquisition, Sonida will utilize around $110 million in new equity from Conversant and its second-largest shareholder, Silk Partners, along with approximately $900 million in bridge debt financing and a $300 million revolving credit facility. Additionally, about $800 million of Sonida common stock will be issued to CNL Healthcare Properties as part of the equity consideration.

Once the deal is finalized, Sonida’s board of directors will consist of seven current Sonida directors and two directors designated by CNL Healthcare Properties, including Stephen Mauldin, the current CEO, President, and Vice Chairman of CNL Healthcare Properties.

Editor’s note: WTWH Vice President, Editorial Director Tim Mullaney contributed to this report.

Sonida Senior Living (NYSE: SNDA) is set to embark on a significant merger with CNL Healthcare Properties in a deal valued at $1.8 billion. This merger positions Sonida as the eighth largest owner of senior living assets in the United States, based on unit count.

Upon completion of the merger, Sonida will boast a combined portfolio of 153 communities, which include independent living, assisted living, and memory care facilities. The newly formed entity will continue to trade under the ticker “SNDA” on the New York Stock Exchange.

This merger marks a pivotal moment for Sonida, effectively doubling the company’s operational footprint. According to a recent press release, the combined company will manage over 14,700 units, solidifying its status as a major player in the U.S. senior housing market.

In an interview with Senior Housing News following the announcement, Sonida Senior Living CEO Brandon Ribar described the merger as a “transformational” move for the Dallas-based owner-operator. “I really do think that this represents a transformational step in the growth plan for Sonida,” Ribar stated, emphasizing the company’s five-year turnaround and growth strategy.

Ribar believes that the acquisition of CNL will enable Sonida to accelerate its growth trajectory. The merger strategically links the two companies’ complementary footprints, enhancing Sonida’s presence in robust submarkets across the South, Southeast, and Midwest, while also expanding its reach into attractive markets like the Mountain West and Pacific Northwest.

“It’s going to create something that’s really attractive for those investors that are looking at the senior living space,” Ribar added, highlighting the current demand and demographic trends that prompted Sonida to pursue this acquisition.

“We’re at a point in time in the growth of the industry where things are accelerating,” Ribar noted. “To scale up and seize additional opportunities early in the cycle is crucial.” He also emphasized the importance of generating strong operating cash flow, which can be reinvested into the business and communities for future growth.

Internally, Sonida has been focused on improving staffing conditions within its communities and has implemented a leadership development program. Externally, the company has expanded its senior housing operating portfolio (SHOP) by adding multiple new communities. In 2024, Sonida acquired 20 communities and has made three acquisitions this year alone, further leaning into its acquisition strategy.

Ribar underscored the importance of effectively integrating and onboarding new communities to ensure strong operational performance in 2026 and beyond. The target closing date for the merger, pending shareholder votes from both Sonida and CNL, is projected for late Q1 or early Q2 of 2026.

“We want to share our vision for local and regional strength so leaders understand that Sonida isn’t coming in to make things uncomfortable,” Ribar explained. “Our goal is to enhance the resources they already have and work with current managers to identify strategic growth opportunities.”

After the merger, Ribar indicated that Sonida’s property mix would remain largely unchanged, with independent living comprising just over one-third of its holdings. Assisted living and memory care will represent 49% and 16% of the portfolio, respectively, allowing for continued operations in familiar markets and smooth integration of new properties.

This strategy aligns with Sonida’s “owner, operator, investor strategy,” which aims to leverage regional scale and diversification, allocate capital effectively, and drive performance while expanding the company’s future investment pipeline with new operating partners.

Following the merger, the two companies anticipate realizing cost synergies of approximately $16 million to $20 million in the year after closing, primarily through structural efficiencies and the termination of CNL Healthcare Corp.’s external advisory contract.

To fund the acquisition, Sonida will utilize around $110 million in new equity from Conversant and its second-largest shareholder, Silk Partners, along with approximately $900 million in bridge debt financing and a $300 million revolving credit facility. Additionally, about $800 million of Sonida common stock will be issued to CNL Healthcare Properties as part of the equity consideration.

Once the deal is finalized, Sonida’s board of directors will consist of seven current Sonida directors and two directors designated by CNL Healthcare Properties, including Stephen Mauldin, the current CEO, President, and Vice Chairman of CNL Healthcare Properties.

Editor’s note: WTWH Vice President, Editorial Director Tim Mullaney contributed to this report.