By Lisa Kerner
Charlotte, N.C., Jan. 16 - Genesis HealthCare Corp. said it entered into a definitive agreement to be acquired by a joint venture between affiliates of Formation Capital, LLC and JER Partners for $63.00 cash per share, a 31.1% premium above the average closing price for Genesis HealthCare common stock over the past 30 trading days.
The deal, worth an estimated $1.7 billion, includes the assumption of debt totaling approximately $450 million, according to a company news release.
"As an independent company operating alongside Formation's portfolio of healthcare companies, Genesis HealthCare Corp. will continue to maintain its long-term focus on delivering superior healthcare to its residents and patients," chairman and chief executive officer George V. Hager Jr., said in the release.
"This transaction is a change in ownership - not a change in direction."
The Kennett Square, Pa.-based provider of long-term care services and centers will be operated under the Genesis HealthCare name as a privately held, independent company controlled by the JER/Formation joint venture.
Formation Capital is an Alpharetta, Ga., private equity firm.
JER Partners, the private equity investment arm of J.E. Robert Cos., a real estate investment management company, is located in McLean, Va.
| Acquirer: | Formation Capital, LLC, JER Partners
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| Target: | Genesis HealthCare Corp.
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| Transaction value: | $1.7 billion (including assumption of about $450 million of debt)
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| Payment per share: | $63.00
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| Announcement date: | Jan. 16
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| Expected closing: | Not disclosed
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| Stock price for target: | Nasdaq: GHCI; $52.85 on Jan. 12
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