HCP to buy real estate assets of HCR ManorCare for $6.1 billion

Health care real estate investment trust, HCP Inc, yesterday said that it will buy the assets of HCR ManorCare Inc, a provider of short- and long-term medical and rehabilitation care, from private equity firm Carlyle Group, for $6.1 billion in a cash and stock deal.

Based in Toledo, Ohio, HCR, is a provider of short-term, post-hospital rehabilitation, complex medical services and long-term care. HCR is owned privately by management and by The Carlyle Group, which had acquired HCR in 2007 for $4.9 billion.

The hospital services provider attracted The Carlyle Group because HCR owns, rather than leases, nearly all its own facilities, which were new and well maintained. The facilities also had low mortgage debt.

Having nearly 60,000 employees, HCR operates more than 338 medicare- and medicaid-certified skilled nursing and rehabilitation centres in more than 500 locations in 32 states of the US. More than 50 of its centres are exclusively for providing Alzheimer's and dementia care.

Long Beach, California-based HCP, an S&P 500 company, is a real estate investment company that invests primarily in real estate in the healthcare industry.

As of 30 September 2010, HCP has 670 properties comprising of 250 in senior housing, 102 in life science, 252 in medical office, 45 in skilled nursing and 21 hospitals.