Shareholders approve Genesis HealthCare buyout
Shareholders of Genesis HealthCare Corp. today, approved a merger agreement between the Kennett Square company and Formation Capital L.L.C. and JER Partners, Genesis announced.
Shareholders of Genesis HealthCare Corp. today, approved a merger agreement between the Kennett Square company and Formation Capital L.L.C. and JER Partners, Genesis announced.
The vote capped a lengthy and contentious bidding process in which some stockholders and rival bidder Fillmore Capital Partners accused Genesis leaders of favoring Formation Capital/JER even though Fillmore often offered more.
Formation Capital/JER will pay approximately $1.9 billion, including the assumption of $475 million in debt, for Genesis, which owns more than 200 nursing homes and assisted living centers in 13 eastern states. In the merger agreement accepted today, Formation/JER agreed to pay $69.35 per share in cash. If the deal is not completed by July 31, the price will increase by approximately 9 percent per year.
Genesis shares were trading at $68.34 late this morning.
Fillmore withdrew from the bidding process last week after the Genesis board of directors endorsed the Formation/JER bid and said the company would pay Formation/JER a $40 million termination fee if Genesis accepted another offer.
"Because the Genesis Board has repeatedly failed to create a level playing field to the detriment of the Genesis shareholders, patients and Fillmore - we end where we started," Ronald E. Silva, president and CEO of Fillmore said last week in a prepared statement.
Genesis said today it expects the deal to be completed in July.
