Manor Care, Toledo, Ohio, said that it has agreed to a $6.3 billion leveraged buyout by the Carlyle Group, a private equity firm, for $67 per share. The price represents a 20% premium on the stocks closing stock price of $55.75 prior to Manor Cares April 11 announcement that it was reviewing strategic alternatives.
The deal to make the nursing home operator a privately held company requires shareholder and regulatory approvals. Manor Care said it expects the deal to close in the fourth quarter of 2007. As of March 31, Manor Care owned or operated 279 nursing homes, 65 assisted-living facilities and more than 200 outpatient therapy, hospice and home-health locations. -- by Vince Galloro