(Reuters) - Skilled Healthcare Group Inc and privately held Genesis HealthCare said on Monday they have agreed to a merger via an all-stock transaction that will create one of the largest U.S. operators of long-term care facilities.
The combined company will operate under the Genesis HealthCare name and will trade on the New York Stock Exchange. Genesis CEO George Hager will lead the new company, which will be based at Genesis' offices in Kennett Square, Pa.
Genesis operates skilled nursing centers and senior living communities and supplies rehabilitation services to other healthcare providers. Skilled Healthcare, based in Foothill Ranch, Calif., runs long-term care facilities and provides a range of services to patients after they leave the hospital.
The combined company will have annual revenue of more than $5.5 billion and more than 500 facilities in 34 states.
The deal, which has been approved by the boards of both companies, is expected to close in early 2015
Under terms of the agreement, Skilled Healthcare shareholders will own 25.75 percent of the equity in the combined company, while Genesis shareholders will own the other 74.25 percent.
In another development, Toledo, Ohio-based Health Care REIT Inc. said it expects to pursue a cashless exercise of an option to buy a 9.9 percent stake in Genesis that it obtained when it acquired real estate from the company in April 2011.
(Reporting by Susan Kelly in Chicago; Editing by Steve Orlofsky and Jan Paschal)
