Report: Kindred ‘Willing To Engage’ In Complete Buyout

April 20, 2017, Mary Kate Nelson, Senior Housing News - Late last year, Kindred Healthcare (NYSE: KND) announced its intention to completely exit the skilled nursing sector.  Now, the Louisville, Kentucky-based post-acute care services provider is reportedly receiving takeover interest.

The one-time skilled nursing giant is in “late-stage” discussions with several potential buyers for its skilled nursing business, according to Dealreporter.  Still, Kindred is not ruling out the possibility of a complete buyout.

Specifically, Kindred would be “willing to engage” in a buyout “if a buyer is willing to pay a significant premium,” Dealreporter reported.

Investment banks are currently working with Kindred on the sale process, which remains in the early stages, Reuters reported, citing people familiar with the situation.  The company may attract interest from private equity firms such as Blackstone Group LP. and Apollo Global Management, or from large health insurers like Humana Inc., Reuters’ sources said.

Exiting the skilled nursing business appears to remain top-of-mind, however.

“While the company does not comment on rumors and speculation, we can confirm that, as announced in November, Kindred is working with advisors and engaging with interested parties as part of our plan to exit the skilled nursing facility business and divest facilities,” Kindred Senior Vice President, Marketing and Communications Susan E. Moss told Senior Housing News.

Kindred expects that its exit from skilled nursing will help the company achieve higher margins and stronger cash flow, while reducing the company’s capital needs.  As of November 2016, Kindred operated 91 skilled nursing facilities nationwide.