Investment firm TPG has reached an agreement with Assisted Living Concepts Inc for the sale of its senior living residence operations for US$278 million. This sale was reached after ALC has been looking for a buyer in the past few months for its underperforming residences.

Many retirement home operations have become attractive targets for acquisitions in the past few years as the US population increasing aged population has increased demand for both nursing and residential facilities.

Assisted Living operates 210 residences for senior living spanning twenty states. Losses have been reported for the 2^nd quarter of 2012 as occupancy has declined. Last November 2011, it reported a net loss of US$4 million, which is thirty percent lower than the previous year.

The deal includes Class A shareholders of Assisted Living would receive a share valuation of US$12 while Class B would receive US$12.90 per share. Overall, the values transacted would total US$278 million.