Kindred Healthcare to acquire Rehabcare Group for $1.3 billion
09 February 2011
US healthcare services company Kindred Healthcare Inc, yesterday agreed to acquire rival Rehabcare Group Inc, for $1.3 billion including debt, in a stock and cash deal, to create the country's largest provider of rehabilitation services.
The merger will create the largest post-acute healthcare services company in the US with over $6 billion in annual revenues and operations in 46 states.
The combined company will operate 118 long-term acute care hospitals with 8,492 beds, 226 nursing and rehabilitation centres with 27,442 beds, 121 inpatient rehabilitation hospitals and 1,808 hospital, nursing centre and assisted living rehabilitation therapy services contracts across the country.
Founded in 1982 and headquartered in St. Louis, Missouri, RehabCare, is a leading provider of post-acute care, owning and operating 34 long-term acute care and rehabilitation hospitals and providing program management services in partnership with over 1,250 hospitals and skilled nursing facilities in 42 states and Puerto Rico.
Kentucky-based Kindred Healthcare, a Fortune 500 healthcare services company with annual revenues of over $4.3 billion, operates hospitals, nursing centres, and contract rehabilitation services across the US.
Kindred is the largest diversified post-acute healthcare provider in the country operating healthcare services in 696 locations, including 89 long-term acute care hospitals, 226 nursing and rehabilitation centres and a contract rehabilitation services business, Peoplefirst rehabilitation services.