November 16, 2021

Dear Willow Valley Communities Residents:

Nearly 40 years ago, we welcomed Residents through the doors of our first community. Inspired by a legacy of hospitality, we made a promise to deliver the most exceptional retirement living experience available anywhere. We’ve maintained that commitment over all these years, and our communities are now home to more than 2,500 Residents originating from at least 40 states. Many say that we are the nation’s best retirement living community, and we continue to grow with the recent addition of SouthPointe and our expansion into downtown Lancaster, with Southern Market and Mosaic.

Today, we are pleased to share news of an exciting new chapter in Willow Valley Communities’ evolution — one we are confident will enhance our already strong position. As many of you know, Marlin Thomas has worked in the leadership of this organization since its inception, and John Swanson joined our executive team in 1991. A few years ago, we began to discuss the inevitability of leadership transition, and over the last year – under the direction of Willow Valley Communities’ Board of Directors – we engaged in a very thoughtful and deliberate process of evaluating succession possibilities.

Our goal in this process was to devise a plan that would preserve the singularity of Willow Valley Communities – its vision, culture, and standard of excellence – while maintaining, or better yet elevating, operations standards and efficiencies. A plan that would enhance and preserve the organization’s financial strength, while making Willow Valley Communities even more appealing as a place to live and work.

Earlier today, the Board of Directors of Willow Valley Communities signed a Definitive Agreement with the Board of Directors of Acts Retirement Services (Acts), creating a Strategic Alliance between our organizations. Established in 1972 and based in Fort Washington, Pennsylvania, Acts is the nation’s third largest not-for-profit provider, with 26 communities in nine states, currently serving approximately 10,000 residents. Like Willow Valley Communities, Acts enjoys a strong reputation for service, financial strength, and commitment to mission and values within the senior living industry.

Even more, we have known the principals of the Acts organization for many years – going all the way back to Acts’ involvement in the very creation of Willow Valley Communities. We are culturally aligned, and – like us – Acts is committed to high standards of quality and service excellence. In many ways, our alliance seems providential – a coming together of two, incredibly strong, historically connected, and strategically complementary organizations.

In this agreement, Willow Valley Communities remains a separate legal entity with its own Board of Directors, management team, brand identity, charitable foundation, budget, and operations practices. As of January 1, 2022, Acts will assume the current management company contract and its duties, continuing to operate under the name Willow Valley Living. On or near April 1, 2022, Acts will become the sole corporate member, overseeing management and joining in the governance for Willow Valley Communities. In this way, Willow Valley Communities will immediately benefit from Acts’ significant operations depth, expertise, and scale. Meanwhile, Acts will benefit from Willow Valley Communities’ expertise in strategic planning, operations, and real estate development. We feel confident that both organizations will become stronger because of this alliance, and more importantly, we are confident that this alliance will best serve and protect you, as Residents of Willow Valley Communities.
In the process of transition and beyond, we do not expect our Residents or Team Members to see any substantive change in service delivery, amenities, programming, or work environment. We are taking great care to ensure continuity, and before long, we expect that you will see the many benefits and assurances this alliance will bring.

We know many of you will have questions. We’ve tried to anticipate common questions in advance, and we offer some answers on the pages that follow. We look forward to introducing you to Acts’ leadership team at a series of Resident meetings on November 18. The schedule for these meetings is attached to this letter. Residents may attend the meeting of their choosing.

We would like to express our sincere gratitude for your consistent support of Willow Valley Communities and our Team. Exciting times are ahead, and we are thrilled to partner with Acts on our path forward!