Amedisys, Inc. has repurchased half of KKR & Co. LP's holdings in the home health, hospice care and personal care company for about $178 million.
The Baton Rouge, La.-based company bought 2,418,304 of its common shares from the New York-based investment firm, representing 7.1% of its aggregate outstanding shares. The company repurchased the shares at 96% of the closing price of its common stock on June 4
The deal will be financed through $140 million of available cash, with the remaining funds raised through borrowings under the company's existing revolving credit facility.
The transaction will be accretive to Amedisys' EPS by 6% to 7%.
After the deal closes, the company will have about $20 million of cash available, with $128 million in outstanding borrowings under its credit facility, resulting in a net leverage ratio of about 0.7x.
"This transaction is a strong signal of confidence in our company's continued attractive growth prospects," said Paul Kusserow, president and CEO of Amedisys.
The company said KKR's nominee, Nat Zilkha, will remain on its board for at least one year following the transaction.
Amedisys will have about 32 million outstanding common shares after the transaction.
