Kindred Healthcare Selling 8 Nursing Centers for $49 Million
Kindred Healthcare announced today that it is selling eight nursing centers for around $49 million to privately run Signature Healthcare.
According to the press release, the sale makes sense for Kindred. All eight centers are considered "non-strategic" and are located outside of the corporation's 21 designated Integrated Care Markets. In fiscal 2012, the facilities brought in around $61 million in net profit.
"The transaction with Signature further accelerates our repositioning strategy with the goal of improving our long-term growth, profitability and financial position," said CEO Paul Diaz in a statement today. "Like the Vibra Healthcare transaction announced in April, this tax-efficient transaction allows us to sharpen our focus on our Integrated Care Markets and provides more capital to grow our home health and hospice operations."
Kindred will use the proceeds from this sale to most immediately address $350 million in outstanding balances under the company's $750 million revolving credit facility. In the long term, the company expects to reinvest the proceeds into further acquisitions and/or Kindred's Integrated Care Markets.
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