ALPHARETTA, Ga., July 13 /PRNewswire/ -- Formation Capital and JER
Partners announced today they have completed the acquisition of Genesis
HealthCare Corporation ("Genesis", previously NASDAQ: GHCI). The total
enterprise value of the transaction was approximately $2.0 billion.
Pursuant to the terms of amended merger agreement entered into on May 19,
2007, Genesis' shareholders received $69.35 in cash for each share of
Genesis' common stock that they held.
"The Genesis portfolio represents a tremendous opportunity for JER and
Formation to acquire a quality portfolio of skilled nursing facilities and
assisted living residences and to serve the growing demand of elderly
Americans for medical and long term care," stated Cia Buckley, President of
JER's US Fund Business. "We look forward to working with Genesis'
management team, which has done an excellent job of repositioning the
business in recent years, to continue executing the strategic initiatives
Arnold Whitman, Chief Executive Officer of Formation further commented,
"Combining a superior management team with a capital partnership that is
focused on modernization and enhancement of care and services to the
elderly provides an excellent opportunity for growth in this dynamic
George Hager, Chief Executive Officer of Genesis, added, "We are
pleased to be partnering with two firms which understand our business from
both a financial and operating standpoint. We have great confidence their
strategic and financial support will enable us to grow and to better serve
our patients and residents."
Genesis is the fifth-largest provider of skilled nursing services in
the United States with a portfolio of 220 skilled nursing and assisted
living facilities totaling over 26,000 beds located primarily in the
Mid-Atlantic and Northeast. Genesis generates more than 90% of its revenue
from its skilled nursing and assisted-living services. The remainder arises
primarily from a range of rehabilitation therapy services, including speech
pathology, physical therapy, and occupational therapy. In addition, Genesis
offers an array of other specialty medical services, including respiratory
health services and physician services.
Genesis offers the largest regional concentration of skilled nursing
facilities located in the Northeast, an area with high occupancy rates and
limited new construction due to land scarcity, zoning restrictions and
state licensing requirements. In 2006, the Genesis portfolio generated 48%
of its revenues from Medicare and non-public payers and had occupancy of
91%, both figures above industry averages.
JER Partners is the private equity investment arm of J.E. Robert
Companies, a real estate investment management company with more than 26
years of experience in sourcing, underwriting and managing a broad spectrum
of real estate equity investments and debt products in North America,
Europe and recently the emerging markets. Most of JER's investments are in
office, hospitality, retail, multi-family and industrial properties. Other
areas of investment include Commercial Mortgage-Backed Securities ("CMBS"),
healthcare related real estate and mezzanine financing. For more
information on JER, please visit http://www.jer.com.
Formation Capital is a private equity firm in the senior housing and
long- term care industry. Over the past five years, Formation Capital has
completed over $1.5 billion of acquisitions in the sector and provides
asset management services to over 250 facilities nationwide. For more
information on Formation Capital, please visit
SOURCE JER Partners