PARKERSBURG - A Parkersburg nursing care facility is part of seven statewide that will be apart of a merger between Genesis Healthcare LLC and Sun Healthcare Group Inc.
The West Virginia Health Care Authority issued a Certificate of Need to Genesis and Sun last week resulting in the change of control of the parent entities and ultimate ownership of the operators of Parkersburg Care and Rehabilitation Center as well as Dunbar Care and Rehabilitation Center, Glenville Care and Rehabilitation Center, New Martinsville Care and Rehabilitation Center, Pine Lodge Care and Rehabilitation Center, Putnam Care and Rehabilitation Center and Salem Care and Rehabilitation Center, said James L. Pitrolo Jr., chairman of the West Virginia Health Care Authority, in a press release.
The capital expenditure associated with the proposal is $11,970,400, the press release stated.
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Parkersburg Care and Rehabilitation Center, located at 1716 Gihon Road in Parkersburg, is going to be part of an upcoming acquisition by Genesis Healthcare LLC. Genesis is merging with the center’s parent company, Sun Healthcare Group Inc.
The combined company will be able to strengthen its core business lines and enhance its collective ability to provide the highest quality patient care while meeting the current challenges facing the healthcare industry, Genesis officials said in a press release from the company.
Under the terms of the merger agreement, Genesis will acquire Sun for $8.50 per share of common stock in cash, resulting in a transaction value of approximately $273.3 million net of cash and debt acquired.
Sun Healthcare's Board of Directors unanimously approved the transaction with the closing expected to occur sometime this fall.
The transaction price represents a 43.1 percent premium over the closing sale price of Sun shares on Tuesday, June 19, 2012 and a 55.6 percent premium to the volume-weighted average closing sale price of approximately $5.46 during the 30 trading days prior to that date, Genesis officials said.
"The combined entity will have broad geographic reach and the scale necessary to remain competitive in the post-acute sector,'' said William A. Mathies, Sun's chairman and chief executive officer. ''On a combined basis, the two companies generated roughly $4 billion in revenue in 2011 and will have more than 420 facilities and more than 75,000 employees.
"This transaction brings together two companies with similar operating structures, experienced and deep management teams, and cultures committed to quality patient care.
Like Sun, Genesis operates a predominantly leased portfolio of skilled nursing and assisted living facilities as well as a fully integrated rehabilitation company. Together, the combined company will be able to use its strengths on a broader scale, which will be advantageous as the post-acute care industry continues to evolve."
Genesis Chief Executive Officer George V. Hager Jr. said this merger will be a tremendous opportunity to grow their business with an established industry operator.
''We look forward to welcoming Sun employees to the Genesis family and working together to build a stronger company," he said. ''This is an exciting time for Genesis HealthCare.
''Genesis and Sun Healthcare Group share a similar philosophy and commitment to quality care.''
Sun's portfolio of businesses is a strong complement to Genesis and the combined operations will enable the company to leverage economies of scale that better position Genesis in the post-acute care industry, Hager said.
''In addition, this transaction will enable us to touch the lives of thousands more patients, residents and family members throughout the country,'' he said. ''There are many details that have to be resolved before the transaction is finalized several months from now. I look forward to commenting on Genesis' future plans after the official closing of this transaction.''
Genesis officials could not comment further on the merger or what results would be seen locally until after the transaction is completed.
