Genesis HealthCare Corp., Kennett Square, Pa., said it has received a competing offer from private real estate equity firm Fillmore Capital Partners, San Francisco, for $64.75 per share, slightly above the amended $64.25 per-share proposal made recently by affiliates of Formation Capital, Alpharetta, Ga., and JER Partners, McLean, Va.
Genesis announced last week that it restructured its original merger agreement with Formation and JER Partners in a $1.7 billion deal that would also assume $475 million in debt. In the original deal announced Jan. 16, Formation and JER Partners had offered $63 per share and agreed to assume $450 million in debt to acquire Genesis.
Genesis' board of directors will review the new proposal relative to the pending transaction, the company said in a news release. Shareholders are expected to vote on the proposed deal with Formation and JER Partners on May 4. Genesis provides long-term care at more than 200 nursing centers and assisted-living residences in 13 Eastern states. It also supplies contract rehabilitation therapy for more than 600 healthcare providers in 20 states and the District of Columbia.
In 2005, an affiliate of Fillmore Capital Partners, Pearl Senior Care, merged with Beverly Enterprises in a $1.8 billion deal. -- by Jessica Zigmond