Kindred Healthcare, Inc, a Louisville-based operator of long-term acute care and rehabilitation hospitals in Chattanooga and 76 other locations, announced today that it has agreed to a $4.1 billion cash purchase from Humana Inc. and two private equity firms.
A consortium of three companies - TPG Capital, Welsh, Carson, Anderson & Stowe and Humana - will pay $9 a share for Kindred common stock, representing a premium of approximately 27 percent to Kindred's 90-day volume weighted average price.
"We are pleased to have reached this agreement, which will deliver significant cash value to Kindred's stockholders and concludes a robust strategic review undertaken by the board and management team over the course of 2017," said Benjamin A. Breier, president and chief executive officer of Kindred. "We believe this agreement maximizes value for stockholders and represents a significant step forward in transforming home healthcare in America by enhancing access to care and reducing costs for people living with chronic conditions. In addition, the specialty hospital company, Kindred Healthcare, will be uniquely positioned to care for the most medically-complex and rehab-intensive populations."
Kindred operates home health, hospice and community care businesses, long-term acute care hospitals, inpatient rehabilitation facilities and a contract rehabilitation services business, including a 49-bed transitional care hospital located at 709 Walnut Street in downtown Chattanooga.. Under the purchase agreement, Kindred will continue to operate as a standalone company owned 40 percent by Humana, with the remaining 60 percent owned by the two equity firms.
Humana will have a right to buy the remaining ownership interest in Kindred at Home over time.
Humana CEO Bruce D. Broussard said the purchase "underscores the successful and ongoing execution of our strategy by joining with the most geographically diverse home healthcare provider in the country.
"We are confident that these new capabilities will help Humana continue to modernize home health and meaningfully improve the member and provider experience," Broussard said in a statement today.