Kindred Healthcare sold to consortium for $9 per share in cash
Kindred Healthcare (KND) announced that its Board of Directors has approved a definitive agreement under which it will be acquired by a consortium of three companies: TPG Capital, Welsh, Carson, Anderson & Stowe and Humana (HUM) for approximately $4.1B in cash including the assumption or repayment of net debt.
Under the terms of the agreement, Kindred stockholders will receive $9.00 in cash for each share of Kindred common stock they hold, representing a premium of approximately 27% to Kindred’s 90-day volume weighted average price for the period ending December 15, 2017, the last trading day prior to media reports regarding the potential transaction.
Immediately following the acquisition of Kindred, the home health, hospice and community care businesses will be separated from Kindred and operated as a standalone company owned 40% by Humana, with the remaining 60% owned by TPG and WCAS.
Humana will have a right to buy the remaining ownership interest in Kindred at Home over time through a put/call arrangement.
Kindred’s LTAC hospitals, IRFs and contract rehabilitation services businesses will be operated as a separate specialty hospital company owned by TPG and WCAS.Upon completing the transaction, Benjamin Breier, president and CEO of Kindred, will serve as CEO of the specialty hospital company, Kindred Healthcare. David Causby, currently EVP and president of Kindred at Home, will serve as CEO of Kindred at Home.
Under a shared services agreement, Kindred Healthcare will continue to provide certain support functions to Kindred at Home for a transitional period. The transaction is expected to close during the summer of 2018.
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