Manor Care, Carlyle Group set to close merger following decision by health care authority

By Lisa Kerner

Charlotte, N.C., Dec. 20 - The West Virginia Health Care Authority lifted the stay on the approval of the pending Manor Care, Inc. transaction with the Carlyle Group.

Manor Care had filed a motion with the Authority asking it to lift the stay and requesting the authority issue an immediate decision in the matter.

It was previously reported that the delay caused by the stay resulted in a monetary loss of about $1 million for Manor Care shareholders nationwide, including West Virginia pension holders.

The authority initially approved Manor Care's CON application on Oct. 19 but held a reconsideration hearing at the request of District 1199 of the Health Care and Social Services Union and the Service Employees International Union.

Manor Care stockholders have already approved the company's merger with an affiliate of the Carlyle Group in a $6.3 billion deal to take the company private.

The merger agreement gives Manor Care stockholders $67 cash per Manor Care share.

"With the notification received today from West Virginia, we have now completed this thorough and rigorous approval process and will close the transaction," Manor Care executive vice president and chief operating officer Stephen L. Guillard said in a company news release.

"As a private company, we will continue to provide the quality care that our patients and residents expect from us," Guillard added.

Manor Care is a Toledo, Ohio-based provider of short-term post-acute and long-term health care.

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