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Genesis Healthcare to Exit TX with Sale of Skilled-Nursing Facilities

Move to Divest Nursing Home Facilities Part of Operator's Plan to Reduce Debt
April 12, 2018
Kennett Square, PA-based Genesis HealthCare (NYSE: GEN) has agreed to sell 23 skilled-nursing facilities in Texas to Regency REIT, a Delaware-registered limited-liability company.

Genesis, one of the largest post-acute U.S. care providers, signed a definitive agreement with Regency to sell 22 owned facilities and one leased building in a deal expected to close about July 1. Genesis also plans to divest an additional leased facility in a separate deal in exiting the Texas inpatient market.

Total revenue and earnings of all 24 facilities totaled just over $180 million in 2017, and Genesis estimates the transactions will reduce the company's debt and lease expenses by just under $100 million. The company warned in a government filing last November that it may have to seek bankruptcy protection without cooperation from its creditors.

The company is "constantly reviewing our portfolio with an emphasis on divesting underperforming assets or assets in non-strategic markets." said Genesis CEO George V. Hager, Jr. in a statement, adding the transaction will allow for additional focus on the company's core markets and will strengthen its overall portfolio.

Genesis HealthCare is a holding company with more than 450 skilled nursing facilities and assisted/senior living communities in 30 states. Genesis subsidiaries also provide rehabilitation and respiratory therapy to more than 1,600 health care providers in 46 states, Washington, D.C. and China.
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