October 3, 2018
KENNETT SQUARE, PA–Genesis HealthCare (Genesis, or the Company) (NYSE: GEN), one of the largest post-acute care providers in the United States, announced Oct. 2 it completed the sale of 15 owned skilled nursing facilities and exited the operations of one leased skilled nursing facility located in Texas. Genesis previously exited the operations of one additional leased facility, leaving seven remaining skilled nursing facilities under operation in Texas, which are expected to be sold in the fourth quarter of 2018.
Aggregate annual revenue and EBITDA of all 24 facilities approximates $175 million and $7 million, respectively. Upon the complete exit from the state of Texas, Genesis estimates these transactions will result in the reduction of approximately $94 million of indebtedness.
“We are constantly reviewing our portfolio with an emphasis on divesting underperforming assets or assets in non-strategic markets,” noted 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,” noted Hager.