• Most Popular
  • Most Shared

Carlyle to buy Manor Care for $4.9 billion

Mon Jul 2, 2007 9:31am EDT

Mergers & Acquisitions  |  Bonds

(Adds details)

NEW YORK, July 2 (Reuters) - Manor Care Inc. HCR.N, the largest U.S. operator of homes for the elderly, said on Monday it agreed to be acquired by Carlyle Group for $4.9 billion, becoming the latest health care provider taken off the public market by a private equity buyer.

Manor Care shareholders will receive $67 per share, a 20 percent premium to the stock's closing stock price on April 10, the day before the company announced it was putting itself up for sale. The total value of the deal, including debt, is $6.3 billion, the company said.

The deal will be financed through a combination of commercial mortgage-backed securities, other debt financing and cash provided by Carlyle.

Private equity firms typically buy companies, cut costs, and sell them later, borrowing around two-thirds of the money needed to finance their deals.

Private equity activity in the health-care sector has accelerated since last year's leveraged buyout of hospital chain HCA Inc. Nursing home chain Genesis HealthCare Corp. GHCI.O agreed to be purchased by private equity buyers in January, and Beverly Enterprises went private in 2005.

The steady cash flows nursing home operators produce is a big attraction for private equity firms that need the cash to pay down borrowed debt.

(Reporting by Michael Flaherty)

((Editing by John Wallace; e-mail: michael.flaherty@reuters.com; +1 646-223-6152))

((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit topnews.session.rservices.com

* BridgeStation: view story .134 For more information on Top News: topnews.reuters.com)) Keywords: MANORCARE CARLYLE/

(C) Reuters 2007. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nN02341717
Mergers & Acquisitions
Bonds


More from Reuters

Volvo Cars says sale to Geely not yet finalized

STOCKHOLM (Reuters) - U.S. carmaker Ford has not yet inked a deal to sell its Volvo Cars unit to China's Zhejiang Geely a spokesman for Volvo said, after Swedish television reported on Wednesday an agreement had been signed.

» More Top News
Malaysians participate in computer attack and defence hacking competition during The 3rd Annual Hack-In-The-Box Security Conference 2004 in Kuala Lumpur on October 6, 2004. REUTERS/Bazuki Muhammad
Commentary:

Year of the breach

Data security breaches are nasty business and should be avoided at all costs, writes Kevin Prince, a chief technology officer at Perimeter e-Security. Here's a look at the biggest breaches and blunders of 2009.  Commentary 

Technology
A condominium under construction is seen in Miami, Florida October 15, 2007. REUTERS/Carlos Barria

Booming in the bust

For most Americans, the housing market collapsed about four years ago. For three real estate heavyweights, it's just getting started.  Full Article 

Housing Market