trending Market Intelligence /marketintelligence/en/news-insights/trending/mohbo99Q8zwpEz1qtMi9zQ2 content esgSubNav
In This List

Kindred Healthcare to be acquired in $4.1B cash deal

Blog

Using ESG Analysis to Support a Sustainable Future

Blog

A Pharmaceutical Company Capitalizes on M&A Activity with Brokerage Research

Blog

2021 Year in Review: Highlighting Key Investment Banking Trends

Blog

Insight Weekly: US stock performance; banks' M&A risk; COVID-19 vaccine makers' earnings


Kindred Healthcare to be acquired in $4.1B cash deal

Humana Inc., Welsh Carson Anderson & Stowe and TPG Capital Management LP are acquiring Kindred Healthcare Inc. in an all-cash deal valued at $4.1 billion.

The consortium will pay $9 in cash for every common share of Kindred, a 27% premium to the company's 90-day volume weighted average price for the period ending Dec. 15, the last trading day prior to media reports regarding the potential transaction.

Kindred will be split, such that its home health, hospice and community care businesses will operate as a standalone company owned 40% by Humana and the remaining 60% by TPG and Welsh.

Humana will have an option to purchase the remaining 60% of the standalone company, referred to as Kindred at Home, from the two firms.

Meanwhile, Kindred's long-term acute care hospitals, inpatient rehabilitation facilities and contract rehabilitation services businesses will operate as a separate specialty hospital company known as Kindred Healthcare that will be owned by TPG and Welsh.

The transaction is expected to close during the summer of 2018 and is supported by Ventas Inc., a long-standing partner of Kindred. Ventas owns 30 long-term acute care and inpatient rehabilitation facilities operated by Kindred.

Kindred President and CEO Benjamin Breier will lead Kindred Healthcare, while David Causby will head Kindred at Home.

Causby is the executive vice president and president of Kindred at Home.

Barclays and Guggenheim Securities LLC are serving as financial advisers to Kindred with Cleary Gottlieb Steen & Hamilton LLP acting as its legal counsel.

Morgan Stanley & Co. LLC and JPMorgan Chase are acting as lead financial advisers to the consortium. Citi is also acting as a financial adviser.

Debevoise & Plimpton LLP and Mintz Levin are serving as legal counsel to the consortium.

Ropes & Gray LLP is serving as legal counsel to Welsh.

TripleTree LLC is acting as a strategic and financial adviser to Humana. Evercore provided a fairness opinion to Humana's board. Fried Frank Harris Shriver & Jacobson LLP is acting as legal adviser to Humana.