Formation again tops Fillmore in bid for Genesis

Share this article:

The saga surrounding the acquisition of nursing home giant Genesis HealthCare Corp. continues to unfold. A joint venture group again offered a bid that earned the recommendation of the Genesis board.

Genesis disclosed Saturday that a venture between affiliates of Formation Capital LLC and JER Partners submitted a bid of $69.35 in cash. This bid is superior to a $69.25-per-share bid submitted last week by Fillmore Capital Partners LLC, the board determined. Under Formation's new offer, the purchase price will increase by about 9% per year, from July 31 to Aug. 31, if the bid is not completed before July 31, and 10% thereafter, until the transaction closes.

Shareholders are scheduled to vote next Wednesday on the Formation offer. Fillmore still has time to counter the Formation bid, one analyst noted. Formation and Fillmore began sparring over Genesis almost a month ago.
Share this article:

More in News

Long-term care continues to lead in deal volume and value: PwC report

Long-term care continues to lead in deal volume ...

Long-term care bucked healthcare industry trends with strong merger and acquisition activity in the second quarter of 2014, according to newly released data from professional services firm PricewaterhouseCoopers.

Empowering nurse practitioners could reduce hospitalizations from SNFs, study finds

Granting more authority to nurse practitioners is associated with reduced hospitalization of skilled nursing facility residents, according to recently published findings.

Pioneer ACO drops out of program, despite reductions in skilled nursing utilization

A California healthcare system has become the latest dropout from the Pioneer Accountable Care Organization program, despite reducing skilled nursing facility utilization and improving its readmission rates. Sharp HealthCare announced its decision in a quarterly financial statement released Tuesday.