Kindred Healthcare, a diversified provider of post-acute care services, has signed a definitive agreement to acquire Senior Home Care for $95m.
Kindred expects to finance the transaction with operating cash flows and proceeds from its revolving credit facility.
The transaction is subject to regulatory approvals and other customary conditions to closing, but Kindred expects to close the transaction in the fourth quarter of 2013.
Senior Home Care provides home healthcare services through 47 locations in Florida and Louisiana. It generates annualised revenues of about $143m.
In Florida, Kindred currently operates ten transitional care hospitals near Senior Home Care’s existing service areas. In Louisiana, Kindred operates one transitional care hospital and five hospital-based acute rehabilitation units.
Senior Home Care would join the Kindred at Home division, which has about 200 sites of service across 13 states and generates more than $350m in annualised revenues.
The acquisition of Senior Home Care reflects another step in the expansion of Kindred’s Care Management Division, which includes the company’s home health business, Kindred at Home.
Kindred Healthcare CEO Paul J Diaz said that the transaction provides the company with an opportunity to continue the expansion of its post-acute services in Florida and Louisiana and supports a growing interest in high-quality, patient-centered integrated care.
"This transaction is another important example of how we are redeploying assets from our divestiture process and repositioning Kindred with a focus on our Integrated Care Markets and our Care Management Division, including Kindred at Home.
"We look forward to Senior Home Care’s team joining our organisation and contributing their knowledge and expertise.
"We in turn believe we can provide our new colleagues with enhanced opportunities for professional growth and development within an organisation that is mission and values driven, innovative and growing," added Diaz.
Kindred Healthcare is a healthcare services company based in Louisville, Kentucky, with annual revenues of approximately $6bn and around 72,000 employees in 46 states.
Kindred, through its subsidiaries, provides healthcare services in 2,167 locations, including 116 transitional care hospitals, six inpatient rehabilitation hospitals, 169 nursing centres, 24 sub-acute units, 105 Kindred at Home hospice, home health and non-medical home care locations, 103 inpatient rehabilitation units (hospital-based) and a contract rehabilitation services business, RehabCare, which serves 1,644 non-affiliated facilities.