GE Capital, Healthcare Financial Services, an operating unit
General Electric Company
), has recently facilitated the acquisition of the Sun Healthcare
Group Inc. by Genesis HealthCare. The company acted as an
administrative agent on an asset-based revolving credit facility
worth $400 million, and as a syndication agent on a $325 million
cash flow term loan credit facility, both of which were utilized
to fund the acquisition.
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Kennett Square, Pennsylvania based Genesis is one of the largest
skilled nursing and rehabilitation therapy providers in the U.S.
With about 80,000 employees, the company has over 400 Skilled
Nursing Centers and Assisted/Senior Living Communities in 29
states, while its Genesis Rehab Services division provides
therapy services to over 1,500 health care providers in 46
On the other hand, Sun Healthcare provides long-term, sub-acute,
and related health care services primarily to the senior
population. Based in Irvine, California, the company has 190
managed inpatient facilities in 23 states. The company mostly
operates skilled nursing centers for seniors, besides offering
assisted and independent living facilities and behavioral health
With the acquisition, Genesis has become a behemoth of sorts in
the skilled nursing segment of the healthcare industry with 422
skilled nursing centers in 29 states. At the same time, the
strategic purchase has extended its presence in the
rehabilitation therapy business to over 1,500 contracts in 46
states. Besides expanding its geographic footprint, the
acquisition is also expected to result in operational synergies
and improve the efficiency with combined annual revenue of
approximately $4.6 billion and employee strength of nearly
General Electric is one of the largest and the most diversified
technology and financial services corporations in the world. With
products and services ranging from aircraft engines, power
generation, water processing, and security technology to medical
imaging, business and consumer financing, media content and
industrial products, it serves customers in more than 100
countries and employs more than 287,000 people worldwide.
Its segments include Energy Infrastructure, Aviation, Healthcare,
Transportation, Home & Business Solutions and GE Capital,
Healthcare Financial Services. With more than $60 billion in
financing over ten years to various companies in the healthcare
sector, GE Capital, Healthcare Financial Services has an in-depth
industry know-how and expertise.
General Electric currently has a Zacks #4 Rank (Sell). We have a
long-term Neutral recommendation on the stock. We also have a
Neutral recommendation and a Zacks #3 Rank (Hold) for
), one of the peers of General Electric.