Private Equity News & Analysis

JER, Formation acquire Genesis for $1.3bn

Private equity real estate firm JER Partners is working with Formation Capital to acquire the long-term health care portfolio Genesis Health Care.

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McLean, Virginia-based JER Partners is working with healthcare investor Formation Capital to take long-term care provider Genesis Health Care private in a $1.3 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 summer, 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 seven states.  

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.