Mega Million Dollar Deals Color M&A Home Health Activity

Fifty-three home health and hospice transactions have taken place year-to-date, and even greater merger and acquisition activity is on the horizon, says Irving Levin Associates in its recent report that shows M&A activity from 2009 through 2014.

Recently, after a long bid war, Kindred Healthcare, Inc. (NYSE: KND) and Gentiva Health Services, Inc. (NASDAQ: GTIV) agreed to merge in a deal valued at $1.8 billion that will create a national powerhouse in the home health and post-acute care sector. The transaction is expected to close in the first quarter of 2015. 

Deals year-to-date amount to roughly $2.3 million in the home health and hospice sector, according to the report. So far, that number falls short of 2013’s $3.2 million representing 65 home health and hospice transactions.

But in August, GTCR LLC hired Goldman Sachs Group and Jefferies to help it find a buyer for Curo Health Services, which operates 87 locations across 10 states, Irving Levin notes, adding that the rumored price is $750 million.

And on the heels of several national home care acquisitions in recent months, Encompass Home Health’s parent company is seeking a buyer for its home health arm. Cressy & Co., the company’s parent, is seeking a purchase price of $700 million.

“There are plenty of strategic buyers still on the prowl, but fewer hostilities expected,” Irving Levin writes.

Read the report here.

Written by Cassandra Dowell