Boston, MA 08/20/2014 (wallstreetpr) – Skilled Healthcare Group, Inc. (NYSE:SKH) and Genesis HealthCare are set to merge and become a new $5.5 billion company. They have signed a definitive agreement in a deal that will result in a new long-term-care company. As per the terms of all-stock transactions, shareholders of Genesis Healthcare will own 74.25% of the new company. Skilled Healthcare shareholders will own the rest of 25.75%.
The details
The new formed combined company will provide job to almost 95,000 employees. It will run more than 500 rehab centers, nursing homes and assisted-living facilities in 34 states. The business will be carried out under the name of Genesis HealthCare and will be listed on NYSE platform. The new formed combined company will be based in Kennett Square. George V. Hager Jr. It will be headed by CEO of Genesis. The merger deal of Skilled Healthcare and genesis is expected to close in early 2015. The deal is subjected to regulatory approvals.
The significance
The merger decision is taken to face the challenges present in the post-acute health-care industry. The changing form of health-care environment can be efficiently deal by making new deals. With the new deal, Genesis will be able to make an entry in the public domain. It used to be a publicly traded firm until 2007. It became a private equity firm as Formation Capital took it over for $1.9 billion transaction. Genesis will cover the costs of the proposed merger with Skilled Healthcare by opting for $1.15 billion in debt financing. Genesis will also pay for Skilled Healthcare Group, Inc. (NYSE:SKH)’s debt.
The additional information
Tripp Levy PLLC, a shareholder rights law firm, is investigating whether if the Skilled Healthcare breached the fiduciary duties in the proposed merger with Genesis Healthcare. It will investigate the key point whether the Genesis is underpaying for Skilled Healthcare shares.
