Pennsylvania Company to Buy Sandy River Long-Term Care Facilities in Maine
Posted on: Friday, 12 May 2006, 00:06 CDT
By Edward D. Murphy, Portland Press Herald, Maine
May 12--Sandy River Health Systems, which operates 11 long-term care facilities in Maine, will be sold to a Pennsylvania company that has also has purchased an option to buy Sandy River's facilities.
Genesis Health Care, based in Kennett Square, Pa., will pay $16 million upfront for Sandy River's operating assets plus pay $5 million for annual leases on the company's properties for 10 years, with two five-year options. At the end of the 20 years, Genesis can buy Sandy River's real estate holdings outright for $53 million.
Genesis said some cuts may be made to Sandy River's headquarters in Portland, but it doesn't anticipate any changes for most of the 1,525 full- and part-time employees. The company will keep some executives in Portland to oversee operations, Genesis said.
"We believe fundamentally that health care is a local business, and Maine is a new state for us," said George Hager, chairman and chief executive officer for Genesis.
Genesis approached Sandy River about the deal, said Michael Tyler, president of Sandy River and one of five local owners.
"We weren't out marketing our company," Tyler said, but "it's the right time in the life cycle of the five owners."
Sandy River has 748 skilled nursing and 220 residential care beds in the state and had revenue of $65 million for 2005.
The local centers include Pine Point in Scarborough; RiverRidge in Kennebunk; Springbrook in Westbrook; and Sedgewood Commons in Falmouth.
Lisa Salamon, a spokeswoman for Genesis, said the agreement requires regulatory approval and probably won't close until the end of the year.
She said Genesis operates 210 skilled nursing centers and 22 assisted living centers in 12 states. Skilled nursing centers take in patients for short-term care, Salamon said, often elderly patients who are discharged from a hospital but aren't yet ready to return home or to a nursing home. Assisted living centers are long-term residences for senior citizens who may need extra care but not extensive help.
Genesis is the fifth-largest skilled nursing and rehabilitation provider in the U.S., Salamon said, and all its operations are in the northeast part of the country. The company also provides physical, speech, occupational and recreational rehabilitation services.
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Source: Portland Press Herald
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