McLean, Virginia-based JER Partners is working with healthcare investor Formation Capital to take long-term care provider Genesis Health Care private in a $1.25 billion (€1 billion) deal.
The investor consortium is paying $63 per share for the company, a premium of 31 percent over the average share price for the past 30 days. JER and Formation will also reportedly assume $450 million in debt.
Genesis, which is headquartered in Kennett Square, Pennsylvania, operates more than 200 long-term care centers and assisted-living facilities in 13 states in the Eastern US.
“[Genesis] is an outstanding company with a superior portfolio of facilities located across 13 states,” Cia Buckley, head of JER’s US fund business, said in a statement. “We view this major acquisition as a key strategic investment for JER and Formation.”
Last July, the pair teamed up to acquire Tandem Health Care, a Florida-based long-term care provider, for $620 million. The seller in that deal was New York private equity firm Behrman Capital. At the time, Tandem operated 78 long-term care facilities in twelve states.
Prior to that, in June, JER acquired $75 million worth of convertible preferred securities from Chicago-based Aviv Healthcare Properties, which financed the acquisition of triple net-leased healthcare facilities. Aviv is using the capital to acquire single assets and portfolios, including 14 skilled nursing facilities acquired at the time of the deal.
Alpharetta, Georgia- and Jenkintown, Pennsylvania-based Formation is focused solely on the nursing home sector.
JER Partners, the private equity real estate arm of J.E. Robert Companies, closed it’s last US-focused opportunity fund closed on $823 million in 2004.