Fillmore Capital proposes acquiring Genesis HealthCare; Formation Capital deal still on the table

By Lisa Kerner

Charlotte, N.C., April 26 - Genesis HealthCare Corp.'s board of directors will review a proposal from Fillmore Capital Partners, LLC to acquire Genesis for $64.75 per share in cash, according to an 8-K filing with the Securities and Exchange Commission.

Fillmore said its all-cash proposal would be funded through equity capital and third-party debt. The proposal is in effect until 5 p.m. ET April 26.

The company has an existing amended merger agreement with affiliates of Formation Capital, LLC and JER Partners to acquire Genesis for $64.25 per share in cash, up from their prior proposal of $63.00 per share. Genesis shareholders of record as of March 5 are scheduled to vote on the transaction on May 4.

Fillmore, in a letter to the Genesis board, said it believes the "acquisition and privatization of Genesis constitutes a compelling investment opportunity, and we continue to believe that Fillmore is best positioned, from both a patient care and financial perspective, to consummate a transaction expeditiously that will be attractive to the Genesis shareholders."

Genesis is a Kennett Square, Pa.-based provider of long-term care services and centers.

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