Formation Capital to Buy Bankrupt Haven Healthcare’s Facilities for $84M

Formation Capital L.L.C. has signed an agreement to acquire bankrupt Haven Healthcare’s portfolio of 24 facilities for an aggregate $84 million. The skilled nursing centers and assisted living properties are located in Connecticut, Massachusetts, New Hampshire, Rhode Island and Vermont. Haven’s financial woes reached a climax in November 2007, and the company is still being investigated by the state regarding its suspected diversion of federal and state funds for investments in a record company and personal real estate, according to the Connecticut Attorney General’s office. With 14 assets located in Connecticut, the portfolio Formation has agreed to buy encompasses all but one of Haven’s properties; a nursing home in South Windsor is not part of the deal. Completion of the acquisition in now in the hands of the bankruptcy court, which must sign off on the deal before it can be finalized. Formation has tapped Genesis HealthCare to oversee management and operation of the properties once it takes over ownership. The transaction is on target to close on August 1.