Published: Wed, December 20, 2017
World Media | By Shelia Harmon

Humana paying $800M for part of Kindred's home health care business,

Humana paying $800M for part of Kindred's home health care business,

The companies will pay $9 in cash for each Kindred share.

Humana teaming with two private equity firms to acquire and subsequently split up Kindred Healthcare Inc., the companies said on Tuesday, in a deal with an enterprise value of about $4.1 billion. Over time, Humana will have the option of buying the remaining ownership in the company, which will be called Kindred at Home.

Humana said the deal will help it manage chronic conditions, keep costs down and improve health. (KND) said that it agreed to be acquired by a consortium, which consists of TPG Capital; Welsh, Carson, Anderson & Stowe; and Humana Inc.

The deal will complement Humana at Home's existing care coordination services with Kindred at Home's providers and home health care expertise.

Upon completing the transaction, Benjamin Breier, President and Chief Executive Officer of Kindred will serve as Chief Executive Officer of the specialty hospital company, Kindred Healthcare. Indeed, the insurer's Humana At Home division already offers services like skilled nursing and in-home support to 1 million people. CEO Bruce Broussard said in a prepared statement that care delivered at home is a "vital element" in improving the health of older people living with those conditions, which can include diabetes or heart disease.

As part of the deal, Kindred will spin off into two separate entities. "This transaction with Kindred underscores the successful and ongoing execution of our strategy by joining with the most geographically diverse home healthcare provider in the country".

"We are excited about the opportunity this acquisition provides to advance our vision for integrated care delivery, as we continue to deliver our Humana At Home capabilities while building a transformative platform for the future", Broussard added.

Chicago-based real estate investment trust (REIT) Ventas Inc.

"We look forward to continuing our partnership with Kindred and working with the new owners as they drive above-market growth and serve increasing numbers of medically-complex patients", Ventas CEO Debra Cafaro stated in a press release.

The transaction is expected to close next summer, provided it secures the necessary approvals from shareholders and regulators.

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