Private equity firm to buy Genesis for $1.7 billion
Two private equity firms said Tuesday they will buy Genesis HealthCare Corp., one of the largest nursing home chains in the country, for approximately $1.7 billion, or $63 per share.A joint venture between affiliates of Formation Capital LLC and JER Partners will control Genesis as a privately held, independent company. Genesis will retain its name. Arnold Whitman is the CEO of Formation, a private equity firm based in Alpharetta, GA. JER Partners is the private equity arm of J.E. Robert Companies, a real estate investment management company in McLean, VA.
"After carefully considering Genesis' strategic options, including evaluating proposals from a number of potential industry, strategic and financial buyers, the board concluded the transaction was in the best interests of the company, including our shareholders and other stakeholders," said George V. Hager, chairman and CEO of Genesis.
The all-cash transaction represents one of the largest nursing home deals in recent months. Last March, Fillmore Capital Partners LLC, also a private equity firm, bought the company formerly known as Beverly Enterprises Inc. in a deal valued at approximately $2 billion, or $12.50 per share. Formation Capital was one of the initial bidders for Beverly Enterprises, attempting a hostile takeover and eventually losing out in an auction.