- Humana Inc.Humana Inc. has agreed to buy the part of KindredKindred at Home that it does not already own from two private equity partners in a deal that gives the home-health business an enterprise value of $8.1 billion.
The health insurer will acquire the 60% of Kindred currently held by TPG Capital and Welsh, Carson, Anderson Stowe according to a statement released on Tuesday.The valuation includes the $2.4 billion equity stake in Kindred, which Humana now holds.
KindredKindred at Home has locations in 40 states and serves more than 550,000 patients a year with home-health and hospice care.
Humana will fund the $5.7 billion transaction with a combination of cash and debt, said the company.The deal isn't expected to have financial impact in 2021, and will offer modest additional material flexibility for 2022 according to the company.Humana is scheduled to post first-quarter results early Wednesday.
KindredKindred Healthcare owned private-equity companies and Humana in 2017 and split the company into two parts.The research firms put on the short-term acute care and rehabilitation facilities, while Humana took a minority stake in the home-care asset, KindredKindred at Home.At the time, Humana said the implied business value of $3.15 billion was $30 million.
Traditional health insurers have been delving deeper into the business of taking care of patients.This year, humana rival MDLive acquired telehealth service Cigna Corp.UnitedHealth Group Inc., largest U.S. insurer, has assembled a giant care delivery arm in its Optum division with more than 53,000 physicians.
Humana is a top seller of the United States Medicare Advantage Plans in which the company receives private premiums from the U.S. government for taking care of the elderly members.
'We continue to invest in assets that enable Humana to better manage the holistic needs of our members and patients by expanding care at the home, said Humana Chief Executive Bruce Broussard in the statement.
Humana recently announced a new health-services brand called CenterWell.KindredKindred at Home will be integrated into Humana's existing home-care business and re-branded CenterWellCenterWell Home Health, the company said.
The KindredKindred at Home hospice and community assets are included in the deal, but the company is intending to hold only a minority interest in that part of the business.According to the release, it will be investigating another listing or public transaction.CEO David Causby will lead that independent company in the future, Humana said.
The acquisition is expected to close in the third quarter.
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