LOUISVILLE, Ky. (Dec. 2, 2013) — Kindred Healthcare Inc. today announced that it has completed the previously announced acquisition of Senior Home Care Inc. for a purchase price of $95 million. The company financed the transaction with operating cash flows and proceeds from its revolving credit facility.
Senior Home Care is one of the largest and the premier home health provider in Florida and Louisiana that operates through 47 locations. Senior Home Care currently generates annualized revenues of approximately $143 million. The company expects the transaction to be accretive to earnings in 2014.
More than half of Senior Home Care’s locations were named to the 2012 HomeCare Elite, a compilation of the top-performing home health agencies in the United States. This annual review identifies the top 25% of Medicare-certified agencies and further highlights the top 100 and top 500 agencies overall.
In Florida, Kindred currently operates 10 Transitional Care Hospitals (certified as long-term acute care (“LTAC”) hospitals) within Senior Home Care’s existing service areas. In Louisiana, Kindred currently operates one Transitional Care Hospital and, through its RehabCare division, five hospital-based acute rehabilitation units within Senior Home Care’s existing service areas.
The acquisition of Senior Home Care reflects another important step in the expansion of Kindred’s Care Management Division, which includes the Company’s home health business, Kindred at Home. Kindred continues to believe that innovation in the delivery of coordinated, high-quality care, in and across care settings, is critical and that this transaction further builds Kindred’s capabilities in these areas.
Kindred is excited to partner with Senior Home Care’s seasoned and highly respected management team to continue to grow and deliver quality outcomes for the large and increasing number of patients in its markets (including over four million Medicare beneficiaries) who can benefit from its services. With a leading presence in key states including Texas, California, Florida and Ohio, Kindred at Home now has approximately 200 branches across 13 states and a national presence that stretches coast-to-coast with over $350 million in annualized revenues.
“This transaction is another important example of how we are executing on the growth phase of our strategic plan,” said Paul J. Diaz, Kindred’s CEO. “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.”
“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 A. Breier, Kindred’s president and COO. “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.”