CEO: Beverly sale means job cuts "possible"
Beverly Enterprises' Chairman and CEO William R. Floyd told employees to expect job cuts after the nursing-home chain is sold. He explained that "under probably any scenario, there will be some positions eliminated."
In announcing the company's sale was moving into a second round of bidding, Floyd said prospective buyers have differing plans for the firm, which employs 34,000 people.
"Some of the finalists have indicated that they would continue Beverly as an operating company in its present form, but others may not do so," Floyd said. He did not rule out current company management getting involved with a bidder.
"I think there is a possibility that one or more of these groups will approach us about the management team partnering with them," he said. Any group aligned with management won't get favorable treatment, he said.
Floyd did not indicate how many bidders are still in play, or name any of the auction participants. Company executives are expected to meet with investor groups through mid-June, and potential buyers will get a more detailed look at the company, Floyd said.
"The board will then ask for final bids and financing arrangements -- and then will select the purchaser," Floyd said. "Once an agreement is signed, it will take a couple months at least to negotiate all the details before the transaction can actually close."
Beverly's board announced in March it was taking the initiative to sell the company after it became apparent that stockholders were poised to elect new leadership amid a $1.5 billion hostile takeover attempt.