Genesis shareholders approve sale to Formation
Stockholders of Genesis HealthCare Corp. voted Wednesday to approve the sale of the nursing home chain to Formation Capital LLC and JER Partners for $69.35 per share.The approval ends a month-long bidding fight between Formation and Fillmore Capital Partners LLC, a private real estate equity firm. The Genesis board determined that Formation's bid was superior to Fillmore's last bid of $69.25 per share. Formation had initially bid $63 per share for the chain.
Genesis expects the transaction to be completed by July. Under the new agreement, the purchase price will increase by about 9% a year, from July 31 to Aug. 31, if the transaction is not completed by July 31. The price will then rise by 10% per year, from Sept. 1 until the transaction closes.