By the July 13 close, the partnership had raised its offer to $69.35 a share following seven successive rounds of counter bids by San Francisco-based Fillmore Capital Partners LLC. On July 13, Genesis shares hit $69.36 a share before settling at the close of the day at $69.33 and disappearing from the Nasdaq exchange.
George Hager, Genesis' CEO, will remain at the company's helm. The Genesis name will be retained along with the current management team. "We are pleased to be partnering with two firms which understand our business from both a financial and operating standpoint," he says in a statement. "We have great confidence their strategic and financial support will enable us to grow and better serve our patients and residents."
"The Genesis portfolio represents a tremendous opportunity for JER and Formation to acquire a quality portfolio of skilled nursing facilities and assisted living residences and to serve the growing demand of elderly Americans for medical and long-term care," says Cia Buckley, president of McLean, VA-based JER's US fund business, in a statement. JER is the private equity investment arm of J.E. Robert Cos., a real estate investment management firm.
Over the past five years, Alpharetta, GA-based Formation has completed more than $1.5-billion of acquisitions in the senior housing and long-term care industry. "Combining a superior management team with a capital partnership that is focused on modernization and enhancement of care and services to the elderly provides an excellent opportunity for growth in this dynamic industry," says Arnold Whitman, Formation's CEO.
Genesis is the nation's fifth-largest provider of skilled nursing services. Its portfolio encompasses 220 skilled nursing and assisted living facilities aggregating more than 26,000 beds, located primarily in the mid-Atlantic and Northeast. The portfolio was 91% occupied in 2006, and 48% of its revenues were generated from Medicare and non-public payers, and the company says that both of those figures are above industry averages.
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