Genesis HealthCare acquisition expected to close by late August

By Jennifer Lanning Drey

Portland, Ore., Jan. 17 - Genesis HealthCare Corp. expects the $1.7 billion transaction under which it will be acquired by a joint venture between affiliates of Formation Capital, LLC and JER Partners to close within four to eight months, according to a spokesperson for Genesis.

The transaction should be completed in the second or third quarter, the spokesperson said.

Under the agreement, which was announced Tuesday, Genesis will be acquired for $63.00 cash per share. The deal also includes assumption of debt totaling about $450 million, according to a company news release.

Upon closing of the transaction, Genesis will be operated as a privately held, independent company controlled by the JER/Formation joint venture under the Genesis HealthCare name.

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

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.

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