Dynamic Healthcare M&A Database

Acquiring Party	Carlyle Group, a major private equity group.
Transferring Party	Manor Care Inc., a major operator of more than 500 long-term care facilities.
Sector	Medical Services
Date	December 21, 2007
Analysis Long-term care considered a safe and growing area, given the aging population, longer life spans and stabilized reimbursement rates. Manor Care offers sizeable scale and substantial real estate values (it owns most of its facilities, which are carried at cost on its balance sheet). In the past few years, there have been several buyouts of long-term care companies: Genesis HealthCare by Formation Capital and JER Partners ($1.9b); Beverly Enterprises by Fillmore Strategic Investors ($2.2b); and Mariner Health Care by National Senior Care Inc. ($1.0b). Manor Care Deal value -- $6.3b, on $3.7b on revenue (1.7x) and $480m in EBITDA (13.1x). Deal closed despite tight credit markets.
The Walden Group is a leading healthcare investment banking firm specializing in mergers, acquisitions and strategic transactions. It also invests its own funds and, together with its expert operational partners, provides value-added services to help special companies reach critical milestones. This information is copyright © 2004-2007 The Walden Group, Inc. This information is provided as a service to the public but remains the intellectual property of The Walden Group, Inc and may not be reproduced in any manner without the written permission of The Walden Group, Inc. The information contained in the transactions table was derived from publicly available and other sources. Transaction analysis and other information are based, in part, upon public comments, Walden Group research and judgments, and reporting and research of others. The information is not intended to be relied upon as pronouncements by the transaction participants or for any other reason.

Dynamic Healthcare M&A Database - 4Q07