Humana and Private-Equity Firms in Talks to Buy Kindred Healthcare

12/17/17 02:45 PM EST
By Anna Wilde Mathews, Dana Mattioli and Dana Cimilluca 

Humana Inc. is in advanced talks to join with two private-equity firms in a deal to acquire home-care provider Kindred Healthcare Inc., a move that would add to a cascade of transactions aiming to bring together insurance operations with other health-care businesses.

As part of the complex deal, Kindred, a sprawling company with $7.2 billion in revenue last year, is to be divided, according to people familiar with the matter. Welsh, Carson, Anderson & Stowe and TPG would take over Kindred's facility-focused business, which includes long-term acute-care hospitals and rehabilitation centers, while the private-equity firms together with Humana would get its home- and hospice-care operation.

The deal would value Kindred at $9 a share, the people said, a modest premium to where the shares currently trade after rallying sharply in recent weeks. Kindred stock closed Friday at $8.60, giving the debt-laden company a market value of about $750 million. Factoring in debt, Kindred has a so-called enterprise value of about $4 billion.

Though a deal could be announced soon, it's still possible the talks could fall apart.

Kindred is the biggest home-health and hospice operator in the U.S. Its facilities business, meanwhile, includes around 77 long-term care hospitals and 19 rehabilitation hospitals.

Laura Cooper contributed to this article.

Write to Anna Wilde Mathews at, Dana Mattioli at and Dana Cimilluca at


(END) Dow Jones Newswires

December 17, 2017 14:45 ET (19:45 GMT)

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