This was an odd morning. I am not sure if the weird factor was that a senior care company was finally being acquired or that there was no real premium to the deal. The Carlyle Group is acquiring Manor Care (NYSE:HCR) in a $4.9 billion acquisition, or $6.3 billion if you include the debt assumption.
Shareholders will receive $67 per share, assuming shareholders approve it. "No-Premium" deals are harder for new shareholders to stomach, but older shareholders will be able to cash out since the stock jumped roughly 20% back in April after word of a deal had come to light when the company announced it was exploring strategic alternatives.
Manor Care employs almost 60,000 people and operates more than 500 facilities in nursing and rehabilitation centers, assisted living facilities, outpatient rehabilitation clinics, and hospice and home care agencies. If you consider the looming retirement of the baby boomers, all of these facilities offer a considerable value.
It sure seems like the price of poker, or bingo in this case, just went up. You expect more consolidation in a cottage industry that is about to become a secular group.
Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.
Manor Care Buyout: Carlyle gives no premium for old fogies
Posted Jul 2nd 2007 6:30PM by Jon Ogg
Filed under: Deals, Products and Services, Industry, Private equity industry
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