Bisciotti partner to purchase retirement community

AP News
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Posted: Dec 23, 2009 1:14 PM

The longtime business partner of Baltimore Ravens owner Steve Bisciotti (bih-SHAH-tee) has struck a deal to purchase Erickson Retirement Communities after a marathon bankruptcy auction.

Erickson filed for Chapter 11 bankruptcy in October and agreed to be taken over by Redwood Capital Investments LLC, which is controlled by Baltimore businessman Jim Davis.

Davis is chairman and majority owner of Allegis Group, the staffing company he founded with Bisciotti, his cousin, in 1983.

Despite the tentative deal with Redwood, another company, New York-based private equity firm KKR & Co., also submitted a bid for Erickson.

Erickson spokesman Mel Tansill says the two companies competed in an auction in New York that lasted for nearly 18 hours, with Redwood emerging as the winning bidder around 4 a.m. Wednesday.

Erickson operates 19 retirement communities with 23,000 residents.