Kindred selling 8 nursing centers for $49M

LOUISVILLE, Ky. (AP) -- Kindred Healthcare Inc. is selling eight nursing centers to Signature Healthcare LLC for about $49 million.

CEO Paul Diaz said in a statement on Tuesday that the transaction allows Kindred to sharpen its focus on its integrated care markets and provides more capital to grow its home health and hospice operations.

In separate transactions, Kindred also disclosed it is acquiring assets in Arizona, Virginia and Florida.

Kindred, based in Louisville, Ky., provided health care services in 116 transitional care hospitals, six inpatient rehabilitation hospitals, 204 nursing centers, 24 sub-acute units, 101 Kindred at Home hospice, home health and non-medical home care locations, 103 inpatient rehabilitation units (hospital-based) and a contract rehabilitation services business, RehabCare, as of March 31.

The company said that it will use net proceeds from the Signature deal to pay back part of the outstanding balance on its revolving credit facility, which currently stands at approximately $350 million. It also plans to reinvest the proceeds into and integrated care markets and to help finance home health and hospice acquisitions.

The sale, which is anticipated to close in the third quarter, is expected to slightly add to Kindred's 2013 earnings.

Kindred also said that it signed deals to acquire the assets of home health and hospice companies in Phoenix and in Virginia Beach, Norfolk and Newport News, Va.

The Phoenix transaction includes the assets of Arrowhead Home Health Inc. and Arrowhead Hospice Centers Inc. The Virginia transaction includes the assets of All Heart Home Health Agency and Hospice Inc.

Financial terms of the deals were not disclosed. They are expected to close in the third quarter.

Kindred also said it has acquired the real estate of Kindred Hospital Bay Area-Tampa in Tampa, Fla. for about $25 million.