GE Facilitates Genesis' Purchase - Analyst Blog
January 07 2013 - 9:50AM
Zacks
GE Capital, Healthcare Financial
Services, an operating unit of General Electric
Company (GE), has recently facilitated the acquisition of
the Sun Healthcare Group Inc. by Genesis HealthCare. The company
acted as an administrative agent on an asset-based revolving credit
facility worth $400 million, and as a syndication agent on a $325
million cash flow term loan credit facility, both of which were
utilized to fund the acquisition.
Kennett Square, Pennsylvania based Genesis is one of the largest
skilled nursing and rehabilitation therapy providers in the U.S.
With about 80,000 employees, the company has over 400 Skilled
Nursing Centers and Assisted/Senior Living Communities in 29
states, while its Genesis Rehab Services division provides therapy
services to over 1,500 health care providers in 46 states.
On the other hand, Sun Healthcare provides long-term, sub-acute,
and related health care services primarily to the senior
population. Based in Irvine, California, the company has 190
managed inpatient facilities in 23 states. The company mostly
operates skilled nursing centers for seniors, besides offering
assisted and independent living facilities and behavioral health
services.
With the acquisition, Genesis has become a behemoth of sorts in the
skilled nursing segment of the healthcare industry with 422 skilled
nursing centers in 29 states. At the same time, the strategic
purchase has extended its presence in the rehabilitation therapy
business to over 1,500 contracts in 46 states. Besides expanding
its geographic footprint, the acquisition is also expected to
result in operational synergies and improve the efficiency with
combined annual revenue of approximately $4.6 billion and employee
strength of nearly 80,000.
General Electric is one of the largest and the most diversified
technology and financial services corporations in the world. With
products and services ranging from aircraft engines, power
generation, water processing, and security technology to medical
imaging, business and consumer financing, media content and
industrial products, it serves customers in more than 100 countries
and employs more than 287,000 people worldwide.
Its segments include Energy Infrastructure, Aviation, Healthcare,
Transportation, Home & Business Solutions and GE Capital,
Healthcare Financial Services. With more than $60 billion in
financing over ten years to various companies in the healthcare
sector, GE Capital, Healthcare Financial Services has an in-depth
industry know-how and expertise.
General Electric currently has a Zacks #4 Rank (Sell). We have a
long-term Neutral recommendation on the stock. We also have a
Neutral recommendation and a Zacks #3 Rank (Hold) for 3M
Company (MMM), one of the peers of General Electric.
GENL ELECTRIC (GE): Free Stock Analysis Report
3M CO (MMM): Free Stock Analysis Report
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