Humana, 2 equity firms to buy Kindred for $4.1B: 6 things to know

Humana and two private equity firms signed a definitive agreement Dec. 19 to acquire Kindred Healthcare, a Louisville, Ky.-based acute care provider, for $4.1 billion in cash including assumption of debt.

Here are six things to know about the deal.

1. Humana worked with Welsh, Carson, Anderson & Stowe and TPG on the acquisition.

2. Under the deal, Welsh, Carson, Anderson & Stowe and TPG will acquire Kindred's facility-focused arm, comprising long-term acute care hospitals and contract rehabilitation services businesses.

3. Following the completion of the acquisition agreement, Kindred's home health, hospice and community care businesses will operate as a separate standalone company. Humana will retain a 40 percent stake in the home health business, with the remaining organizations maintaining a 60 percent share in the company.

4. Humana and the two private equity firms will pay $9 per share for Kindred, according to The Wall Street Journal.

5. Kindred Healthcare President and CEO Benjamin Breier will remain in his position.

6. The news follows a slew of acquisitions announced by payers this month. About two weeks ago, UnitedHealth Group's Optum unit said it will acquire DaVita Medical Group for approximately $4.9 billion in cash. A potential Humana-Kindred deal also comes two weeks after CVS Health inked a definitive merger agreement to acquire all outstanding shares of Aetna for roughly $69 billion in cash and stock. Another national insurer, Cigna, expanded its digital portfolio with its Dec. 14 acquisition of Brighter, a Santa Monica, Calif.-based software-as-a-service digital health plan platform.

Editor's note: This article was updated at 10:55 a.m. CST Dec. 19 to include additional information about the transaction.

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