Kennett Square-based Genesis HealthCare has agreed on its sale to 101 West State Street for $1.02 billion following five rounds of bidding last week, writes John George for the Philadelphia Business Journal.
The bid for the bankrupt nursing home operator is structured to include $343 million in cash, a $100 million promissory note, and the assumption of $572 million in existing liabilities.
101 West State Street is backed by California-based Generation Health, a healthcare consulting and operations firm that specializes in managing skilled nursing and post-acute care facilities.
The Genesis HealthCare sale remains subject to approval, with a hearing scheduled for Jan. 20 in U.S. Bankruptcy Court in Texas.
Genie 3 Partners, the original stalking horse bidder for the Chester County company, was named the backup bidder after the auction, submitting a final bid of $991 million. Genie 3, which set the opening bid of $259 million along with a $100 million promissory note, is a partnership between Milrose Capital and Integro Healthcare Services.
Genesis said it was “pleased the competitive, court-supervised process has produced a winning bid that reflects the value of this organization.”
Read more about the sale of Genesis HealthCare waiting for approval in the Philadelphia Business Journal.
______
