Centerbridge to sell Carefree Communities to Sun Communities

Sun Communities Inc (NYSE: SUI) has agreed to buy Carefree Communities Inc, an owner and operator of senior manufactured housing communities and destination RV resorts concentrated in California, Florida, and Ontario. No financial terms were disclosed for the cash-and-stock deal, which is expected to close in July. The seller is U.S. private equity firm Centerbridge Partners. Scottsdale, Arizona-based Carefree acquired Port Colborne, Ontario’s Sherkston Shores RV Resort in July 2013.


Carefree Communities Inc. To Be Acquired By Sun Communities, Inc.

Mar 22, 2016

SCOTTSDALE, Ariz., March 22, 2016 /PRNewswire/ — We are pleased to announce that Sun Communities, Inc. (NYSE: SUI) (“Sun Communities”) has entered into an agreement to acquire Carefree Communities Inc. (“Carefree”) from Centerbridge Capital Partners II, L.P. and its related entities (“Centerbridge”) in a transaction for cash and SUI shares as consideration (the “Transaction”).

Headquartered in Southfield, MI, Sun Communities will become the premier publicly traded REIT within the manufactured housing (“MH”) and park model recreational vehicle (“RV”) industry following the Transaction. Carefree’s MH and RV communities will be operated by Sun Communities’ management team under the Sun Communities brand. Carefree’s team will remain in place during the interim period to oversee the Transaction and ensure a smooth transition for the residents.

Colleen S. Edwards, Carefree Vice Chairman and Co-Founder, said, “We are very excited about the opportunity to join together to become the premier company in the MH and RV industry. We anticipate a smooth transition because Sun Communities and Carefree are equally committed to operational excellence and share in the same mission, vision and values of taking care of our associates so they can deliver an exceptional lifestyle to our residents.”

David A. Napp, Carefree CEO and Co-Founder, added, “We are proud of the company we have built over the last decade. Through our partnership with Centerbridge, we have not only grown to a best-in-class company but have also provided our guests a memorable experience through communities that offer vibrant resort style living, friendly and helpful associates, well maintained facilities, and efficient operations.”

William D. Rahm, Centerbridge Senior Managing Director, said, “The Transaction commemorates a successful partnership with a strong and highly experienced management team. We feel fortunate to have worked with Dave, Colleen and their team to grow Carefree into a leading company in the MH and RV industry. We look forward to watching the future success of the company as a shareholder of Sun Communities.”

The Transaction is expected to close no later than July 9, 2016 and is subject to customary closing conditions and adjustments.

Goldman, Sachs & Co. acted as financial advisor to Carefree Communities and Simpson Thacher & Bartlett LLP acted as legal advisor. Citigroup acted as financial advisor to Sun Communities and Jaffe, Raitt, Heuer & Weiss, Professional Corporation acted as legal advisor.

About Sun Communities, Inc.

Sun Communities owns, operates, and develops MH and RV communities concentrated in the midwestern, southern and southeastern United States. As of December 31, 2015, Sun Communities owned and operated a portfolio of 231 properties located in 30 states, comprising 69,682 developed manufactured home sites, 9,559 annual RV sites (inclusive of both annual and seasonal usage rights) and 9,371 transient RV sites, and approximately 7,181 additional manufactured home sites suitable for development. Sun Communities leases individual parcels of land, or sites, with utility access for placement of manufactured homes and RVs to our customers. The Properties are designed to offer affordable housing to individuals and families, while also providing certain amenities.

About Carefree Communities, Inc.

Carefree is a leading owner and operator of senior manufactured housing communities and destination RV resorts concentrated in California, Florida, and Ontario, Canada. Carefree owns 103 MH and RV communities, comprising 9,829 manufactured home sites and 17,725 RV sites as well as over 2,900 additional MH and RV sites suitable for development. As one of the fastest growing companies in the MH / RV sector, Carefree strives to create a “leisure resort lifestyle” with a strong sense of community for its residents, delivered with a superior level of customer service.

About Centerbridge Partners, L.P.

Centerbridge is an investment management firm focused on private equity and credit investment opportunities. As of March 2016, the Firm has approximately $25 billion in capital under management with offices in New York and London. The firm is dedicated to partnering with world-class management teams across targeted industry sectors to help companies achieve their operating and financial objectives.

For further information: For Carefree Communities, Colleen S. Edwards, 480-423-5700, ext. 110

Photo courtesy of Carefree Communities Inc