Kindred to Acquire Senior Home Care for $95 Million
Kindred Healthcare, Inc. (NYSE: KND) looks to expand its home health business line with a $95 million acquisition of Senior Home Care, Inc., a southeast home health provider.
A premier home health provider that operates 47 locations in Florida and Louisiana, Senior Home Care currently generates annualized revenues of approximately $143 million, which Kindred expects will be accretive to earnings in 2014, according to a release from the company.
Providing home health services predominantly in the Southeast, more than half of Senior Home Care’s locations were named to the 2012 HomeCare Elite compilation of the top-performing home health agencies in the U.S., recorded in terms of the top 25% of Medicare-certified agencies.
“Senior Home Care’s unique platform is scalable and diversified,” said Benjamin A. Breier, president and chief operating officer at Kindred. “With a strong reputation built on patient service, clinical expertise and focused specialty programs, its platform includes a world class business software solution and experience with new care delivery and managed care models and features efficient operations and multiple growth opportunities.”
Kindred already operates 10 transitional care hospitals—certified as long-term acute care hospitals—within Senior Home Care’s existing service areas in Florida.
In Louisiana, Kindred currently operates one of these transitional care hospitals via its RehabCare division, which includes five hospital-based acute rehabilitation units within Senior Home Care’s existing service areas in the state.
“This transaction provides us a tremendous opportunity to continue the expansion of our post-acute services in Florida and Louisiana and supports the growing interest among patients, physicians, hospital systems and public and private payors for high-quality patient-centered integrated care,” said Kindred CEO Paul J. Diaz.
The acquisition also further expands Kindred’s Management Care Division, which includes the company’s home health care business, Kindred at Home.
With the acquisition, Kindred at Home now has approximately 200 sites of service across 13 states—including Texas, California, Florida and Ohio—with over $350 million in annualized revenues.
While the transaction is subject to regulatory approvals and other customary conditions prior to closing, Kindred expects to close the deal in the fourth quarter of 2013.
“We look forward to Senior Home Care’s team joining our organization and contributing their knowledge and expertise,” said Diaz. “We in turn believe we can provide our new colleagues with enhanced opportunities for professional growth and development within an organization that is mission and values driven, innovative and strong.”
Written by Jason Oliva