Formation Capital and JER Partners Acquire Genesis HealthCare
July 13 2007 - 3:17PM
PR Newswire (US)
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 in
place." 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 industry." 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
http://www.formationcapital.com/. DATASOURCE: JER Partners CONTACT:
David Sturtevant, +1-703-813-5643 X243, , for JER Partners Web
site: http://www.jer.com/ http://www.formationcapital.com/
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