Kindred Acquires Home Health Care Provider IntegraCare for $75 Millon

Home health care and hospice provider IntegraCare has been acquired by Kindred Healthcare, Inc. (NYSE:KND), a Louisville, Ky.-based long-term care and rehabilitation services provider, for up to $75 millon. 

IntegraCare Holdings, Inc., is a Texas-based portfolio company of private equity firm Flexpoint Ford LLC, and was purchased for $71 million in cash plus up to $4 million more based on 2013 earnings. The transaction will be financed with operating cash flows and proceeds from Kindred’s revolving line of credit; IntegraCare will have no outstanding long-term debt at closing. 

IntegraCare provides home health, hospice, and community services and operates in 47 locations across Texas. The company currently generates annualized revenues of approximately $71 million with an EBIDTA of approximately $9 million. 

Kindred currently operates three nursing and rehabilitation centers, nine long-term acute care hospitals, three inpatient rehabilitation facilities, and one hospital-based sub-acute unit within IntegraCare’s existing service areas. The transaction provides an expansion platform into additional markets throughout the south of Texas, including the Houston market where Kindred already has a large presence. 

“This transaction will add further size and scale to our growing home health and hospice business. With IntegraCare, our home health and hospice division will have a revenue run rate in excess of $200 million and over 100 locations,” said Paul Diaz, CEO of Kindred, in a statement. “We believe that the continued expansion of our continuum of post-acute care services in our key cluster markets supports the growing interest among patients, physicians, hospital systems and public and private payors for high-quality, patient-centered integrated care.”

Kindred expects the transaction to close by the end of the third quarter of 2012; it is still subject to several regulatory approvals and other conditions. The acquisition is expected to result in a slight gain to Kindred’s earnings in 2012, with a $0.07 to $0.09 per diluted share gain to earnings in 2013.

Written by Alyssa Gerace

Alyssa Gerace

Categories:


Companies:

,

By continuing to use the site, you agree to the use of cookies. More Information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this. For more information, see our cookie policy

Close