Manor Care, the largest nursing home operator, announced that it is being acquired by the Carlyle Group for the amount of $4.9 billion. When considering the debts the Carlyle Group would assume, the deal costs a total of $6.3 billion. The recent trend for private equity firms to acquire large nursing home operators has been the attractiveness of the steady cash flow and real estate that nursing homes provide.
Manor Care shareholders will receive $67 per share as part of the acquisition that will leave only Kindred Healthcare, Sun Healthcare Group, and Skilled Healthcare remaining as the nation’s major nursing home operators.
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