Kindred Sells Seven Nursing Centers for $47 Million

Kindred Healthcare, Inc. (NYSE: KND) announced Wednesday that it has sold seven nursing centers for approximately $47 million to affiliates of Signature Healthcare, LLC.

The facilities—five of which are owned and the remaining are leased—contain 900 licensed nursing beds and are located outside of Kindred’s 21 designated Integrated Care Markets. 

Collectively, the nursing centers generated revenues of approximately $63 million and earnings before interest, income taxes, depreciation and amortization of approximately $7 million for the year ended December 31, 2012—where the facilities had an aggregate rent expense of $2 million.

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Kindred had previously announced its intention to sell eight facilities to Signature Healthcare, but it was unable to satisfy all closing conditions for the sale of one facility and elected to remove it from the transaction, according to a company release. 

With the proceeds from the transaction, Kindred intends to pay down the outstanding balance under its revolving credit facility, which was an estimated $350 million at March 31, 2013.

“We are pleased to complete this tax-efficient transaction, which further accelerates our repositioning strategy with the goal of improving our long-term growth, profitability and financial position,” said Kindred CEO Paul J. Diaz.

“We will continue to sharpen our focus on our Integrated Care Market strategy that enabled us to better Continue the Care for our patients and provide high-quality clinical outcomes throughout an entire post-acute episode,” he added.

RBC Capital Markets served as the exclusive financial advisor to Kindred on the Signature transaction.

Written by Jason Oliva

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