Humana and Private-Equity Firms in Talks to Buy Kindred Healthcare
December 17 2017 - 3:00PM
Dow Jones News
By Anna Wilde Mathews, Dana Mattioli and Dana Cimilluca
Humana Inc. is in advanced talks to join with two private-equity
firms in a deal to acquire home-care provider Kindred Healthcare
Inc., a move that would add to a cascade of transactions aiming to
bring together insurance operations with other health-care
businesses.
As part of the complex deal, Kindred, a sprawling company with
$7.2 billion in revenue last year, is to be divided, according to
people familiar with the matter. Welsh, Carson, Anderson &
Stowe and TPG would take over Kindred's facility-focused business,
which includes long-term acute-care hospitals and rehabilitation
centers, while the private-equity firms together with Humana would
get its home- and hospice-care operation.
The deal would value Kindred at $9 a share, the people said, a
modest premium to where the shares currently trade after rallying
sharply in recent weeks. Kindred stock closed Friday at $8.60,
giving the debt-laden company a market value of about $750 million.
Factoring in debt, Kindred has a so-called enterprise value of
about $4 billion.
Though a deal could be announced soon, it's still possible the
talks could fall apart.
Kindred is the biggest home-health and hospice operator in the
U.S. Its facilities business, meanwhile, includes around 77
long-term care hospitals and 19 rehabilitation hospitals.
Laura Cooper contributed to this article.
Write to Anna Wilde Mathews at anna.mathews@wsj.com, Dana
Mattioli at dana.mattioli@wsj.com and Dana Cimilluca at
dana.cimilluca@wsj.com
(END) Dow Jones Newswires
December 17, 2017 14:45 ET (19:45 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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