Formation, JER buy Genesis Health for $1.52 bln

Fri Jul 13, 2007 4:44pm EDT

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CHICAGO, July 13 (Reuters) - Formation Capital and JER Partners said they closed the acquisition of U.S. nursing home operator Genesis HealthCare Corp GHCI.O, the latest health care company to be snapped up by private equity firms.

The deal, valued at about $1.52 billion, excluding about $475 million in debt, gives Genesis shareholders $69.35 in cash for each share they own.

Private equity money has been flowing into health care service companies for the past year. Last week, Manor Care Inc HCR.N, the biggest nursing home chain, agreed to be bought for about $4.9 billion.

Genesis is the fifth biggest skilled nursing chain in the United States, with about 220 facilities, mostly nursing homes and assisting living.

Fillmore Capital Partners LLC had also bid for Genesis, but lost out to the joint venture of the two private-equity firms.

(Reporting by Kim Dixon. Additional reporting by Aditi Samajpati in Bangalore)

((Editing by Andre Grenon; Reuters Messaging;; email; +1-312 408 8561)) Keywords: GENESISHEALTH TAKEOVER/

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