Formation Capital has announced it signed an agreement to purchase Connecticut-based Haven Healthcare, which has been in Chapter 11 bankruptcy protection since late last year. Genesis HealthCare will manage the 27 facilities on behalf of Formation Capital and Senior Care Development. We understand the price is approximately $85 million. The buyer has a few weeks to complete due diligence, and subject to pending regulatory and licensing approvals, the deal is expected to be finalized on August 1. Genesis is a major operator in New England, so its knowledge of the local markets should be very helpful. We don’t know whether the price will drop a bit, however, if census has decreased and losses have increased. Repairing the reputation will take some time with all the negative press.
The Senior Care Market
