Genesis Healthcare acquires Sun Healthcare Group

By Admin
Genesis HealthCare has announced completing the acquisition of Sun Healthcare Group Inc, with effect from December 1. California-based Sun Healthcare p...

Genesis HealthCare has announced completing the acquisition of Sun Healthcare Group Inc, with effect from December 1. California-based Sun Healthcare primarily serves the senior population.

It owns SunBridge Healthcare, LLC which, directly through affiliates, operates skilled nursing facilities, assisted and independent living centers, and behavioral health centers in 23 states. The company owns SunDance Rehabilitation, CareerStaff Unlimited, and SolAmor Hospice.

As per the terms of the deal, Genesis acquired Sun for $8.50 a share of common stock in cash. The aggregate amount of the merger consideration was about $215 million that excludes the closing costs and the repayment of approximately $89 million of Sun indebtedness.

The skilled nursing care provider financed the transaction using borrowing under a term loan and available cash. The merger of two companies has led one of the largest skilled nursing providers in the country, with 422 skilled nursing centers in 29 states. It has also expanded Genesis HealthCare’s rehabilitation therapy business to more than 1,500 contracts in 46 states. 

The new company will have nearly 8,000 employees and combined annual revenue of around $4.6 billion.

The Genesis HealthCare headquarters will remain in Kennett Square, Pennsylvania. George V. Hager, CEO, Genesis said, “The addition of Sun’s portfolio enables us to expand the breadth of services we provide nationwide and creates economies of scale that better position’s Genesis for the challenges facing the post-acute care industry in the years to come.”  He adds, “We are also excited to partner with healthcare leaders across the country to create solutions to today’s healthcare challenges.”

Barclays serves as Genesis’ exclusive financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP, Williams Mullen and Arnall Golden Gregory LLP acted as its legislative advisors.

Genesis HealthCare is the largest skilled nursing care provider with more than 400 skilled nursing center and assisted living residences in 29 states nationwide. It also supplies rehabilitation therapy to over 1,500 healthcare providers in 46 states.




Featured Articles

5 minutes with Yoni Nevo, CEO of Sweetch

At behavioural science company Sweetch, CEO Yoni Nevo treats chronic illnesses with digital therapeutics solutions, using AI & emotional intelligence

Canada’s telehealth support for Ukrainian healthcare workers

McGill University has stepped up to support healthcare workers in Ukraine with training videos to help provide life-saving care for those in the conflict

How Contura’s hydrogel technology can help patients knees

Contura’s hydrogel works as a scaffolding for the body, where it needs extra support. In 2022 the company will adapt for the digital healthcare space

MVP Health Care’s Kim Kilby on hybrid healthcare’s future


Loylogic’s path leads to higher healthcare app engagement

Digital Healthcare

Lenovo’s move from laptops to digital healthcare

Digital Healthcare