Kindred to buy Professional HealthCare
Kindred Healthcare continues expanding its footprint in the home healthcare sector with the acquisition of Professional HealthCare, a portfolio company of Mainsail Partners. The definitive agreement signed by the two companies will transfer Professional’s 27 home healthcare locations to Kindred for $51 million in cash.
“The Professional transaction adds to the size and scale of our growing home health and hospice business,” Paul Diaz, Kindred’s president and CEO said in a statement. “There is substantial overlap with Kindred’s businesses in many of Professional’s markets, which will allow us to expand our continuum of post-acute services in these cluster markets. 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 integrated care.”
Kindred is a healthcare services company that offers services in more than 2,200 locations. In addition to operating long-term acute care hospitals, inpatient rehabilitation hospitals and nursing and rehabilitation centers, it has about 20 hospice and home care locations. Within the last year, it has expanded its interests in the home care sector with the purchase of the California operations of CareSouth and Ohio-based Signature Health Services.
[See also: Kindred Healthcare to acquire CareSouth; Kindred Healthcare to acquire Ohio home health providers.]
The acquisition of Professional’s locations in northern California, Arizona, Nevada and Utah is expected to close by the end of the third quarter of 2011. Kindred plans on financing the transaction with operating cash flows and revolving credit facility proceeds. The sale may be slightly accretive to earnings in 2012.
