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Private-Equity JV Buys Genesis for $1B Plus

KENNETT SQUARE, PA-Formation Capital and JER Partners will pay $1.25 billion and assume $450 million in debt for Genesis' 221 skilled nursing and assisted living facilities.

By Marita Thomas | Updated on January 16, 2007

KENNETT SQUARE, PA-Genesis HealthCare Corp. has entered into an agreement to be acquired by a joint venture between Formation Capital LLC and JER Partners in a transaction valued at an aggregate of approximately $1.7 billion. It includes a cash payment of $1.25 billion and the assumption of approximately $450 million in debt and represents $63 per share of GHCI stock, which currently trades on the Nasdaq.

According to a Genesis statement, the price represents a premium of approximately 31.1% above the average closing price of the stock over the past 30 trading days. On news of the acquisition, shares of GHCI spiked from $52.85 a share to $61.48 a share.

Having just acquired 11 properties in Maine, as GlobeSt.com reported, Genesis now operates 221 facilities, aggregating 26,768 beds in 13 states, according to a company spokeswoman. Of those, she says 195 are skilled nursing facilities, and 26 are assisted living properties. Locally based Genesis will continue to operate the facilities under the Genesis name.

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