Kindred Healthcare, Inc. (NYSE:KND) announced on Tuesday the closing of its previously announced, $95 million acquisition of Senior Home Care, Inc.
The transaction was financed with Kindred’s operating cash flows and proceeds from a revolving credit facility.
Senior Home Care, a home health provider with 47 locations in Florida and Louisiana, currently generates annualized revenues of approximately $143 million. Kindred expects the transaction will be accretive to its 2014 earnings.
The acquisition of Senior Home Care is an important step in the company’s Care Management Division expansion, which includes its home health business, Kindred at Home, according to the company.
“This transaction is another important example of how we are executing on the growth phase of our strategic plan,” said Paul Diaz, CEO of Kindred, in a statement. “Expanding our Care Management capabilities, particularly within our Integrated Care Markets, allows Kindred to improve care coordination throughout an episode of care, improving outcomes and each patient’s experience, as we work to support well-being and independence at home.”
Kindred will be partnering with Senior Home Care’s management team to grow and deliver outcomes for an expanding patient base in the companies’ markets. Kindred at Home now has around 200 branches in 13 states and more than $350 million in annualized revenues.
“Senior Home Care’s business model is characterized by attractive margins and low capital intensity and fits well with our Continue the Care strategy in developing Kindred’s overall operations in a number of key Integrated Care Markets in Florida,” said Benjamin Breier, Kindred’s President and chief operating officer, in a statement. “With the acquisition of Senior Home Care, Kindred has one of the largest and broadest national footprints of home health and hospice services of any company in the country.”
Written by Alyssa Gerace