In effort to exit Texas, Genesis sells 15 skilled nursing facilities

By John George  – Senior Reporter, Philadelphia Business Journal

Oct 3, 2018, 11:33am

Genesis HealthCare on Wednesday completed the sale of 15 of its skilled nursing homes in Texas in a deal that is part of the Kenneth Square, Pa.-based company plan to completely leave the Lone Star State.

“We are constantly reviewing our portfolio with an emphasis on divesting underperforming assets or assets in non-strategic markets,” said George V. Hager Jr., CEO of Genesis. “This deleveraging transaction will allow for additional focus on our core markets and will strengthen our overall portfolio.”

In addition to the sale of the 15 nursing homes, the purchase price of which was not disclosed, Genesis (NYSE: GEN) also exited the operations of one leased skilled nursing facility in Texas. The company now operates just seven nursing homes in Texas. It expects to sell those before the end of the year.

Once it completes its exit from the state of Texas, Genesis estimates the transactions will result in the reduction of about $94 million of indebtedness.

Genesis, through its subsidiaries, operates more than 400 skilled nursing facilities and assisted/senior living communities in 30 states nationwide. It also supplies rehabilitation and respiratory therapy to more than 1,600 health care providers in 46 states, the District of Columbia and China. 

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