Daniel E. Straus: Deal to Create A Huge Chain In Elder Care

Daniel E. Straus is an American business executive, entrepreneur, venture capitalist, real estate developer and philanthropist. He's the creator or cofounder of several health care companies for example CareOne LLC, The Straus Group, Multicare Companies Inc., and InnovaCare Health Solutions, LLC. He's also Vice Chairman of the Memphis Grizzlies.
They took the company public in 1993 at $10 a share and later split the stock, 3 for 2, making its adjusted first cost $6.67.
''We made a lot of cash for lots of people,'' Daniel E. Straus said yesterday. The Straus family will get about $455 million for their 43 percent stake in Multicare.

• he investors -- the Cypress Group of New York, which comprises James A. Stern and three former colleagues in a buyout unit at Lehman Brothers, and the Texas Pacific Group -- will pay $420 million and will get the other 58 percent. There'll also be $675 million in senior debt financing, and the new company will assume $342 million of Multicare's debt.
• ichael R. Walker, chairman and chief executive of Genesis, said the deal would enhance his ''strategic assignment'' -- to provide a full range of health care services for the elderly on the East Coast. Genesis has 17,000 nursing home beds; Multicare has 15,000 plus 1,000 in assisted living homes for individuals who need less care.

The Texas Pacific Group, based in San Francisco and Fort Worth, is a sponsor of TPG Partners II L.P., a $2.5 billion partnership specializing in corporate acquisitions.The combined company would also provide day care centers, rehabilitation after strokes and accidents, home healthcare and prescription drugs for nursing home patients.Mr. Walker said Multicare was the dominant provider in Boston and three New Jersey counties, Bergen, Morris and Essex, where it's 13 nursing homes. It has 20 percent of the market in West Virginia.Mr. Walker is negotiating with Blue Cross plans and other managed care companies, offering discounts and case management for elderly patients with chronic ailments like depression or memory loss.