Kindred Healthcare to Acquire Home Health Company for $51M

Kindred Healthcare KND today announced that its subsidiary has signed a definitive agreement to acquire the equity of Professional HealthCare, LLC, a portfolio company of Mainsail Partners, for a purchase price of $51 million in cash. Professional is a provider of home health, hospice, private duty nursing services and durable medical equipment. The Company expects to finance the transaction with operating cash flows and proceeds from its revolving credit facility. Professional will have no outstanding long-term debt at closing. Professional operates 27 locations in northern California, Arizona, Nevada and Utah that currently generate annualized revenues of approximately $53 million. Kindred currently operates 21 nursing and rehabilitation centers and four long-term acute care hospitals within Professional's service areas. In addition, Kindred's Peoplefirst home health and hospice business currently provides home health services in San Francisco and southern California.