FYI: http://www.courier-journal.com/article/20100824/BUSINESS/308240034/1003/rss03
Kindred Healthcare is buying five long-term care hospitals in Southern California for $180 million and three nursing and rehabilitation centers in the Dallas-Fort Worth area for $38 million.
The acquisitions will enlarge Kindred’s cluster of health care facilities in those two key markets, the Louisville company said in a news release.
Kindred said it expects the new operations to generate annual revenue of about $174 million, including $150 million from the hospitals, which it is acquiring from Vista Healthcare.
The company plans to turn two of the nursing centers into transitional care centers focusing on short-term rehabilitation and medically complex patients. Kindred also will add a transitional-care unit to the third nursing center.
Paul Diaz, Kindred president and CEO, said the purchases further the company’s strategy of offering a continuum of long-term care services, including nursing care, rehabilitation, transitional care and hospitals, in key markets. The company already has operations in Southern California and has six hospitals in the Dallas-Fort Worth area.
Kindred said it expects the acquisitions will contribute slightly to earnings this year and eventually add 17 to 22 cents in per-share earnings.
That estimate factors in the expected added cost of refinancing Kindred’s debt, including the funds it will borrow to buy the new facilities, but doesn’t take into account an expected $6 million to $8 million in transition costs.
Both transactions require regulatory approvals and are expected to close later this year.
Kindred shares gained about 3 percent by midday Tuesday. The deals were announced before the market opened.
Kindred Healthcare is buying five long-term care hospitals in Southern California for $180 million and three nursing and rehabilitation centers in the Dallas-Fort Worth area for $38 million.
The acquisitions will enlarge Kindred’s cluster of health care facilities in those two key markets, the Louisville company said in a news release.
Kindred said it expects the new operations to generate annual revenue of about $174 million, including $150 million from the hospitals, which it is acquiring from Vista Healthcare.
The company plans to turn two of the nursing centers into transitional care centers focusing on short-term rehabilitation and medically complex patients. Kindred also will add a transitional-care unit to the third nursing center.
Paul Diaz, Kindred president and CEO, said the purchases further the company’s strategy of offering a continuum of long-term care services, including nursing care, rehabilitation, transitional care and hospitals, in key markets. The company already has operations in Southern California and has six hospitals in the Dallas-Fort Worth area.
Kindred said it expects the acquisitions will contribute slightly to earnings this year and eventually add 17 to 22 cents in per-share earnings.
That estimate factors in the expected added cost of refinancing Kindred’s debt, including the funds it will borrow to buy the new facilities, but doesn’t take into account an expected $6 million to $8 million in transition costs.
Both transactions require regulatory approvals and are expected to close later this year.
Kindred shares gained about 3 percent by midday Tuesday. The deals were announced before the market opened.