Beverly Completes Merger; Some Executives to Retire

Beverly Enterprises Inc. of Fort Smith on March 14 completed its merger with Fillmore Capital Partners affiliate Pearl Senior Care for $12.50 per share.

The announcement comes about a month after Beverly shareholders approved the $1.59 billion deal at a special meeting.

Beverly operates 342 skilled nursing facilities, 18 assisted living centers, and 67 hospice and home care centers. Through Aegis Therapies Inc., the company offers rehabilitative services on a contract basis to facilities operated by other care providers.

Fillmore Capital Partners is a private equity firm. Its subsidiary, Pearl Senior Care, was organized specifically to buy Beverly Enterprises.

On March 15, the companies announced that several Beverly executives would retire from the company effective immediately. Those executives are:

Douglas J. Babb, executive vice president and chief administrative and legal officer;

Jeffrey P. Freimark, executive vice president and chief financial and information officer;

Steven A. Brigance, senior vice president of litigation;

Pamela H. Daniels, senior vice president, controller and chief accounting officer;

Lawrence Deans, senior vice president, chief human resources officer;

James M. Griffith, senior vice president of investor relations and corporate communications; and

Barbara R. Paul, M.D., senior vice president, chief medical officer.

“These executives played key roles in the turnaround we completed at BEI during 2004, and in the excellent operating and financial results we achieved in 2005,” William R. Floyd, outgoing chairman and CEO of Beverly, said in a news release. “They helped build a strong culture of accountability, and the leadership they have consistently demonstrated under challenging conditions has left BEI a much stronger enterprise.”