Manor Care Finds a Buyer

Carlyle Group snags the nursing home and rehab-center operator in a $6.3 billion deal.
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Manor Care

(HCR) - Get Report

agreed to be acquired by private-equity giant Carlyle Group in a $6.3 billion deal.

Carlyle will pay $67 a share for the Toledo, Ohio, nursing home and rehabilitation center operator. The price represents a 2.6% premium over Manor Care's Friday closing price of $65.29, and it's a 20% premium over the stock's close April 10, the day before the company announced that it was exploring a sale.

"The Board of Directors and our financial advisors thoroughly evaluated a wide range of strategic alternatives to maximize shareholder value," said Paul Ormond, Manor Care's chief executive, chairman and president. "Partnering with top tier firm Carlyle and providing our shareholders with this attractive valuation is the best of those alternatives."

The $6.3 billion deal value includes the assumption of debt. The transaction will be financed through a combination of commercial mortgage-backed securities, other debt financing and equity provided by Carlyle.

The deal is expected to close in the fourth quarter.