Kindred acquires 5 California hospitals, 3 Texas nursing homes
Kindred Healthcare, one of the nation's leading long-term care hospital companies, is acquiring five acute care hospitals in California and three nursing homes in Texas in two separate deals totaling $218 million.
The Louisville, Ky.-based company has signed a definitive agreement to acquire five acute care hospitals in California from Vista Healthcare, LLC in a $180 million cash transaction.
The deal with Vista, which is based in Rancho Cucamonga, Calif., involves four free-standing, long-term care hospitals and one hospital-in-hospital with a total of 250 beds, all located in southern California. The assets being acquired currently generate annualized revenues of approximately $150 million.
“We view the Vista transaction as a great opportunity to meet the growing demand for our services in southern California and expand our hospital operations,” said Paul J. Diaz, Kindred’s president and CEO. “The Vista hospitals provide several clinical service offerings not currently available in our area hospitals providing us with an opportunity to expand our clinical services as well as attract more commercial and managed care business.”
Kindred intends to finance the transaction with proceeds from its revolving credit facility. The deal is expected to close in the fourth quarter of 2010.
In a separate deal, Kindred subsidiaries have signed a definitive agreement to acquire three recently constructed nursing and rehabilitation centers in the Dallas-Fort Worth market for $38 million in cash.
Kindred intends to develop two of the three nursing centers into transitional care centers, focused on short-term rehabilitation and medically complex patients, and add a transitional care unit to the third nursing center.
The three centers have a total of 405 beds and currently generate annualized revenues of approximately $24 million.
Kindred and its subsidiaries operate 83 long-term acute care hospitals and 223 nursing and rehabilitation centers across the United States. The company has annual revenues of over $4.2 billion and approximately 53,500 employees in 40 states.
