Genesis Healthcare Going Private in $1.2 billion Deal

Genesis HealthCare Corp agreed to be taken private by affiliates of two private equity firms Formation Capital LLC and JER Partners for about US$1.2 billion plus the assumption of approximately US$450 million in debt. Genesis HealthCare shareholders will receive US$63.00 per share in cash, which represents an approximate 19% premium over the closing share price of US$52.85 on January 12, 2007. Genesis HealthCare is one of the nation’s largest long-term care providers with over 200 skilled nursing centers and assisted living residences in 13 eastern states. Genesis also supplies contract rehabilitation therapy to over 600 healthcare providers in 20 states in the District of Columbia.

The financial advisors in the deal include: UBS AG for Genesis Healthcare Corp /Private Group/, Goldman Sachs & Co for Genesis Healthcare Corp. The legal advisors in the deal include: O’Melveny & Myers LLP for Genesis Healthcare Corp /Private Group/, Williams Mullen Clark & Dobbins for Genesis Healthcare Corp /Private Group/, Cleary Gottlieb Steen & Hamilton LLP for Genesis Healthcare Corp, Wachtell Lipton Rosen & Katz for Genesis Healthcare Corp.