Genesis, 2 Funds to Buy Elder-Care Firm

Genesis Health Ventures and two investment funds said they will pay $1.4 billion for nursing home operator Multicare Cos., a deal that would create an elder-care network reaching from New Hampshire to Washington, D.C. Genesis, Cypress Group and Texas Pacific Group created a new company called Genesis ElderCare Acquisition Corp. The $28-a-share buyout marks a 9.3% premium over Multicare’s Friday closing price of $25.625 on the New York Stock Exchange. Multicare’s stock rose $1.25 to close at $26.875 on Monday. Genesis stock rose 25 cents to close at $35.375 on the NYSE. Genesis, based in Kennett Square, Pa., will continue to make more use of its nursing homes by increasing the proportion of outpatient care it provides, Chief Executive Michael Walker said. The deal requires regulatory approval.