Genesis Healthcare (NASDAQ:GHCI)
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Genesis HealthCare Corporation (“GHC”
or “Genesis”)
(NASDAQ: GHCI) today announced that the venture between affiliates of
Formation Capital, LLC (“Formation”)
and JER Partners (“JER”)
has offered to amend its merger agreement with Genesis by increasing the
purchase price to acquire all outstanding shares of Genesis stock to
$65.25 per share in cash, up from the current price of $64.25 per share.
Under the proposal, if the transaction is not completed prior to July
31, 2007, the purchase price will increase by 9% per annum, or $0.01609
per day, beginning July 31, 2007 until the transaction closes.
The Board of Directors of Genesis, consistent with its fiduciary duties
and the Company's obligations under its existing merger agreement with
affiliates of Formation and JER, is reviewing Formation/JER’s
proposal. As previously announced on April 30, 2007, the Genesis Board
also is reviewing a $65.25 per share offer from Fillmore Capital
Partners, LLC. Under the terms of the Fillmore proposal the offer price
will increase by 6% per annum, or $0.01073 per day, beginning August 15,
2007 until the transaction closes.
Genesis also announced that its adjourned annual meeting of
shareholders, at which the shareholder vote on the Formation/JER
transaction will take place, has been moved to May 11, 2007 at 10:00
a.m. from May 4, 2007. The meeting will be held at Genesis headquarters
in Kennett Square, Pennsylvania. Only shareholders of record as of March
5, 2007 are entitled to vote at the annual meeting. At this time, the
Board’s recommendation in favor of the
Formation/JER transaction is unchanged.
Shareholders who have questions or require assistance in voting their
shares should contact MacKenzie Partners at 800-322-2885.
About Genesis HealthCare Corporation
Genesis HealthCare Corporation (NASDAQ: GHCI) 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 and the District of Columbia.
About Formation and JER
Formation Capital is a private equity firm in the senior housing and
long-term care industry. Over the past five years Formation Capital has
completed over $1.5 billion of acquisitions in the sector and provides
asset management services to over 250 facilities nationwide. For more
information on Formation Capital, please visit www.formationcapital.com.
JER Partners is the private equity investment arm of J.E. Robert
Companies, a real estate investment management company with more than 25
years of experience in sourcing, underwriting and managing a broad
spectrum of real estate equity investments and debt products in North
America and Europe. JER has completed over $1.1 billion of acquisitions
in the senior housing sector. JER’s primary
investments are in office, hospitality, retail, multi-family,
healthcare-related real estate and industrial properties. Other areas of
investment include commercial mortgage-backed securities (“CMBS”)
and mezzanine financing. For more information on JER, please visit www.jer.com.
Forward-Looking Statements
A number of the matters discussed in this document that are not
historical or current facts deal with potential future circumstances and
developments, in particular, information regarding the expected
timetable for completing the transaction, successful integration of the
business, benefits of the transaction and any other statements contained
in this news release that are not purely historical fact are
forward-looking statements. The discussion of such matters is qualified
by the inherent risks and uncertainties surrounding future expectations
generally, and also may materially differ from actual future experience
involving any one or more of such matters. Such forward-looking
statements involve risks and uncertainties that could cause actual
results to differ materially from those projected. Such risks and
uncertainties include, but are not limited to, the approval of the
proposed merger by regulatory agencies, approval of the merger by the
shareholders of GHC, satisfaction of various other conditions to the
closing of the merger contemplated by the merger agreement and the risks
that have been described from time to time in GHC’s
reports filed with the Securities and Exchange Commission (“SEC”),
including its definitive proxy statement in connection with the 2007
annual meeting of shareholders and its annual report on Form 10-K for
the fiscal year ended September 30, 2006. This document speaks only as
of its date, and each of GHC, JER and Formation disclaims any duty to
update the information herein.
Additional Information and Where to Find It:
On March 7, 2007, GHC filed with the SEC, and thereafter furnished to
shareholders, a definitive proxy statement in connection with its 2007
annual meeting of shareholders. Since March 7, GHC has filed additional
proxy soliciting materials, and GHC intends to furnish shareholders with
a proxy supplement relating to the amendment of the merger agreement. Investors
and security holders are urged to read the proxy statement, supplement
and other documents filed or to be filed by GHC because they contain (or
will contain when available) important information about the proposed
merger. Investors and security holders may obtain a free copy of the
proxy statement and other documents filed by GHC (when available) at the
SEC website at http://www.sec.gov.
The proxy statement, supplement and other documents also may be obtained
for free from GHC by directing such requests to Genesis HealthCare
Corporation, Investor Relations, 101 East State Street, Kennett Square,
PA 19348; telephone: 610-925-2000.
Participants in the Solicitation
GHC and its directors, executive officers and other members of its
management and employees may be deemed participants in the solicitation
of proxies from its stockholders in connection with the proposed merger
and GHC’s scheduled 2007 annual meeting.
Information regarding the persons who may, under the rules of the SEC,
be considered participants in the solicitation of proxies from GHC
shareholders is set forth in GHC’s proxy
statement filed on March 7, 2007 and in its proxy statements and Annual
Reports on Form 10-K previously filed with the SEC.