US-based Kindred Healthcare has entered into an agreement to acquire inpatient rehabilitation hospitals operator, Centerre Healthcare, for $195m in cash.
Centerre operates 11 inpatient rehabilitation hospitals with 612 beds, in collaboration with leading acute care hospital systems through joint ventures.
Additionally, the hospital operator is constructing two facilities with a total of 90 beds, which are expected to commence operations in 2015.
It also has a pipeline of additional hospitals in various stages of development.
Kindred Healthcare president Benjamin Breier said: "Our acquisition of Centerre will expand our relationships with some of the nation’s premier hospital systems.
"This is a positive step in Kindred’s strategy to collaborate with healthcare networks, managed care providers, and other health entities in local markets so that we may best meet patient needs, reduce costs and improve clinical outcomes."
Centerre’s operations are expected to generate revenues of $200m in 2014 and earnings before interest, income taxes, depreciation, amortisation and rent of $48m.
Combining the strengths of RehabCare, Kindred’s rehabilitation hospitals and Centerre, Kindred will establish a new business line, Kindred Hospital Rehabilitation Services.
Centerre president Patrick Foster said: "We believe that Kindred’s expertise across the post-acute continuum will build upon this reputation and bring new opportunities to partner with hospitals and health systems."
The new business will carry out operations in 36 states in 384 locations, and is expected to report revenues of $578m. It will continue to operate under Kindred’s RehabCare division.
Subject to multiple conditions to closing, the transaction is expected to be completed in the first quarter of 2015.