Privately held Genesis Healthcare and publicly traded Skilled Healthcare Group intend to merge, creating a post-acute-care behemoth with approximately $5.5 billion in pro forma revenue.
Under terms of a deal announced Monday afternoon, Genesis, based in Kennett Square, Pa., will absorb Foothill Ranch, Calif.-based Skilled Healthcare. Genesis shareholders will own 74.25% of the new combined company, while existing Skilled shareholders will own the remaining amount. The new company will operate under the Genesis name and will continue to trade on the New York Stock Exchange, where Skilled currently trades.
Together, Genesis—which was taken private in July 2007 by private-equity firm Formation Capital in a $1.9 billion deal—will operate 449 skilled-nursing facilities and 55 assisted-living facilities, along with several other specialty-care facilities. Genesis CEO George Hager Jr. will retain the top leadership spot.