October 27 - U.S. health insurer TPG Capital announced on Tuesday that it would acquire the 60% stake it did not own in the home health and hospice provider Kindred at Home from HumanaHumana Inc for $5.7 billion to expand its patient care business.
Humana's insurance business is focused on individuals in the U.S. government's Medicare program for the elderly and disabled.The deal builds on its focus to utilize health providers in members' homes to improve health outcomes and save costs.
The company and two equity firms TPG Capital and Welsh and Connie had KindredKindred Healthcare Inc for up to $810 million in December 2017.What is your favorite family's night out?
Humana said although Kindred's hospice and community care operations are not included in the deal, Humana aims to retain only a minority stake in this portion of the asset to ultimately do so.
The company is exploring a future independent listing or another private entity and intends for the future public company to be led by Chief Executive of Kindred at Home, David Causby.
The deal has an Enterprise value of $8.1 billion which includes the current equity value of $2.4 billion in Humana connected with its 40% minority ownership interest.
Humana is expected to fund the deal in the third quarter and will close it via a combination of parent company cash and debt financing.
The health insurer had cash and cash equivalents of $4.7 billion as of December 31 and said it does not expect a material impact to its 2021 earnings from the deal.
Humana was a financial advisor to Goldman Sachs Co. LLC, while Barclays advised KindredKindred and Guggenheim Securities, LLC.
Fried, Frank, Harris, Shriver Jacobson LLP and Humana were the legal advisors to Frank, while Debevoise Plimpton and Mintz Kindred helped Shriver.What do you think of The aforementioned examples?