LOUISVILLE, Ky. (AP) — Kindred Healthcare Inc. said Monday that it reached a deal to buy IntegraCare Holdings Inc. for $71 million in cash plus a potential $4 million cash earn-out based on 2013 earnings.
IntegraCare, which is currently owned by private equity firm Flexpoint Ford LLC, provides home health, hospice and community services through 47 locations across Texas. Its annual revenue totals $71 million.
Kindred said it expects the addition to IntegraCare to result in cost savings of $1.5 million once the company is fully integrated next year. The Louisville, Ky.-health care services provider said it plans to finance the transaction with operating cash flows and existing debt.
Kindred currently operates three nursing and rehabilitation centers, nine long-term acute care hospitals, three inpatient rehabilitation facilities and one hospital-based sub-acute unit within IntegraCare's existing service areas.
The company said the addition of IntegraCare will add size and scale to its growing home health and hospice business.
The deal, which remains subject to regulatory approvals and customary closing conditions, is expected to close by the end of the third quarter. Kindred said it expects the acquisition to slightly boost its profits this year and add between 7 cents and 9 cents per share to its earnings in 2013.
Kindred shares fell 12 cents to $11.19 in morning trading.