Two large not-for-profits announced that they were combining to create the 12th largest not-for-profit senior living organization in the country. Lutheran Senior Services, based in St. Louis, Missouri, signed an agreement to bring Diakon Senior Living operations and four CCRCs under its umbrella. Both organizations were described by Adam Marles, LSS President and CEO, as financially healthy, not-for-profit organizations that are coming together strategically in the interest of better serving seniors. That has been a common theme among not-for-profits since the pandemic, as they have often required scale to survive in a lower-occupancy and lower-margin environment. But not all have been as lucky to merge as “financially healthy” organizations.
The new LSS will have annual revenues of nearly $350 million and offer 12 CCRCs, one assisted living community, and nine senior affordable housing communities, as well as home-based services in three states: Missouri, Illinois and Pennsylvania. The transaction is pending regulatory approvals with an anticipated closing date this summer.
