Earlier this month, Foundry Industrial introduced a brand new deal to merge senior dwelling suppliers Spring Arbor and Allegro into a brand new operator referred to as Allegro Dwelling. Now comes the enjoyable half, in line with Doug Schiffer, who will lead the newly mixed operator as president and CEO.
Within the coming yr, each corporations will mix their operations and emerge as Allegro Dwelling with 53 senior dwelling communities working underneath a number of model names. Previous to the merger announcement, each corporations had their very own “secret sauce,” Schiffer stated.
Allegro had developed a repute for high-end, purpose-built communities, and Spring Arbor dropped at the desk the backing of nationwide actual property agency Foundry Industrial and its capital sources. The businesses additionally had complimentary geographic footprints in 13 states situated within the U.S. Midwest, Southeast, Northeast and Mid-Atlantic.
Leaders from the 2 corporations started speaking a few potential merger final yr at an trade convention, and rapidly realized they shared some complimentary strengths. Allegro had a focus of communities in Florida, whereas Spring Arbor and Foundry had a footprint within the Mid-Atlantic. On the similar time, Allegro had paused new improvement given development challenges, and was in search of to herald a brand new accomplice for acquisition capital or third-party administration alternatives.
“We realized that Allegro was in markets that we would love to entry, and vice versa,” Foundry President of Healthcare Providers Kevin Maddron instructed Senior Housing Information. “It sort of snowballed right into a a lot larger dialog the place we stated, ‘Why don’t we simply do that collectively?’ We each have very robust organizations, so on a mixed foundation, it would actually be a one plus one equals three.”
With the preliminary announcement behind them, Spring Arbor and Allegro are presently combining their metaphorical condiments to “create a brand new sauce,” in line with Schiffer. The top objective is to create a brand new firm with a number of manufacturers situated in numerous markets and companies starting from energetic grownup to reminiscence care, all unified underneath the Allegro Dwelling umbrella.
“Our objective all year long 2025 is to work by way of all these totally different integrations and to essentially be one working firm,” Schiffer instructed Senior Housing Information.
This isn’t Spring Arbor’s first time bringing new communities into its administration umbrella. In 2022, Foundry Industrial acquired the Spring Arbor platform from HHHunt. A yr later, Foundry upsized the platform by including 16 extra communities.
“We’ve finished some related acquisitions previously,” Maddron instructed SHN. “There shall be some new concepts as we work collectively.”
This yr, leaders with the newly mixed operator are inspecting the 2 corporations’ processes and workforces to mesh them collectively. Within the coming months, the 2 corporations will look at and probably retool every thing from 401(ok) advantages to which insurance coverage distributors they work with.
Alongside the best way, they may add just a few new non-leadership roles targeted on the senior dwelling resident expertise and acquire some new shared experience. For instance, Allegro is bringing to the desk its years of expertise creating senior dwelling communities, one thing that Spring Arbor and Foundry had beforehand lacked.
“It’s going to be plenty of enjoyable features of the previous pure Allegro and the previous pure Spring Arbor and discovering that equilibrium,” Schiffer stated.
Maddron added: “Once I look sooner or later, as we get previous the combination, we’re excited to entry new markets and new alternatives we wouldn’t have had in any other case, and to essentially meet the wants of our capital market back-of-the-house processes.”
