Carlyle to buy Manor Care for $6.3bn

Carlyle, the US private equity group, on Monday announced a deal to take over Manor Care, one of the largest US nursing home operators, in a $6.3bn deal. wow gold smoke detector
If successful, the acquisition will further extend the reach of private equity into the healthcare industry. HCA, the largest US hospital operator, is owned by a consortium including Bain Capital, Kohlberg Kravis Roberts and Merrill Lynch. china tour world of warcraft gold
A buy-out of Manor Care, which is based in Ohio and run by Paul Ormond, the chief executive, had been expected since April, announced it was exploring its strategic options, effectively putting itself up for sale. Carlyle is paying $67 per share in cash for Manor Care, or a 20 per cent premium over its market value of $55.75 per share before it launched the auction. wow powerleveling
On Friday, Manor Care shares closed at $65.29. Karen Bechtel, head of Carlyle’s healthcare team, said: “We are delighted to have this opportunity to invest in the largest owner and operator of facilities providing post-acute care services and long term care in the country.” wow powerleveling
Manor Care said the deal would be financed through commercial mortgage-backed securities, as well as a traditional debt and equity package.
The acquisition comes at a time when turmoil in the credit markets is raising questions about the sustainability of the boom in leveraged takeovers. foosball table wow gold
However, many large buy-out groups seem undeterred, pressing ahead with their plans.
On Saturday, the Ontario Teachers Pension Plan teamed up with Providence Equity Partners and Madison Dearborn Partners to buy BCE, the Canadian telecommunications group, for nearly $49bn – in what could be the largest buy-out on record.wow powerleveling china travel
Bankers at JPMorgan and Citigroup and lawyers at Cravath advised Manor Care. Carlyle worked with Morgan Stanley, Credit Suisse, Bank of America and lawyers at Latham Watkins.