Carlyle Group Completes Acquisition of Manor Care
The Carlyle Group, a private equity company, on Dec. 21, 2007, announced the completion of a $6.3 billion acquisition of Manor Care, which operates more than 500 long-term care facilities in more than 30 states, the Des Moines Register reports (Des Moines Register, 12/25/07).
Under the acquisition, announced in July 2007, Manor Care shareholders will receive $67 per share, a 3% premium over the price on June 29, 2007, and a 20% premium over the price in April 2007, when the company announced interest in a sale. Large long-term care companies have become attractive acquisition targets because of increased demand and higher Medicare reimbursements for their services (California Health Line, 7/3/07).
According to the Washington Post, the "hard-fought buyout was completed even with a credit market in turmoil, a tenacious and influential labor union opposing the deal, and concerns on Capitol Hill" about such acquisitions. Manor Care officials said that the acquisition will not lead to major changes in daily operations, although Carlyle has announced a reorganization plan.
Manor Care CEO Paul Ormond and other high-level company officials will remain in place. Rick Rump, assistant vice president of communications at Manor Care, said, "Carlyle are shareholders, not managers" (Kang, Washington Post, 12/24/07).