Genesis HealthCare has closed on its $215 million deal to purchase Sun Healthcare Group, according to a news release
Genesis, Kennett Square, Pa., acquired Irvine, Calif.-headquartered Sun for $8.50 a share of common stock in cash, according to the release. The deal between the two post-acute-care providers also includes repayment of about $89 million of Sun's debts. The sides first announced
the deal in June, and the Federal Trade Commission approved the deal
Genesis CEO George Hager Jr. said in the release that the deal was made to prepare the company for healthcare reform: “We have an exceptional leadership team in the new combined company, and we look forward to providing our expanded portfolio the same exceptional care our patients and residents have come to know and trust.”
The purchase will give Genesis 422 skilled-nursing centers across 29 states and bolsters Genesis' rehabilitation therapy business to more than 1,500 contracts in 46 states. Simultaneously, Life Choice Hospice, Dresher, Pa., purchased Sun's SolAmor Hospice for about $85 million. About $75 million from that sale went to repay Genesis senior indebtedness, as Genesis owns about a 33% interest in Life Choice, according to the release.