Genesis Healthcare in $1.7 Billion LBO

January 19, 2007

Cleary Gottlieb is acting as counsel to Goldman Sachs, financial advisor to the Special Committee of the Board of Directors of Genesis Healthcare, in the all-cash sale of the company to a private equity consortium consisting of Formation Capital and JER Partners. The enterprise value of this leveraged buy-out is $1.7 billion.

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 and the District of Columbia.

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.

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’s primary investments are in office, hospitality, retail, multi-family, healthcare-related real estate and industrial properties.