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HCP Inc. To Pay Carlyle Group $6.1 billion for HCR ManorCare's Nursing Home Properties–Biggest Private Equity Deal of the

Posted Dec 15 2010 12:54am

HCP is paying 3.5 billion in cash and the rest is in stock and reinvestment of debt.  The nursing home properties are located in Pennsylvania, Florida, Illinois and Michigan.  HCP is located in Long Beach, California and is a large investor in healthcare real estate.  image They are only buying the facilities and not the nursing home business.  Carlyle and fellow private equity giant TPG won a bidding war for Australia's Healthscope recently.

This is yet one more investor cash in on the aging of our seniors and there are more out there trying to figure out how to make money from aging baby boomers and their care.  In the meantime the GAO last month opened up an inquiry into the quality of care given in nursing homes owned by private equity firms. 

Private equity investments in healthcare continue and there’s even a group that is non profit in healthcare when they unite and talk about making profits, kind of an oxymoron if you will.  BD

The biggest private-equity deal of the year is a bet on the aging of the baby boom generation.
HCP Inc., a Long Beach-based real estate investment trust, announced that it would pay $6.1 billion to buy the real estate assets of nursing home giant HCR ManorCare Inc.
HCP is acquiring 338 post-acute, skilled nursing and assisted-living properties in 30 states, including Ohio, Pennsylvania and Florida.

HCR ManorCare, based in Toledo, Ohio, will continue to run the company and will lease back the properties. HCR ManorCare is owned by private-equity giant Carlyle Group, which acquired the company for $6.1 billion in 2007.

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