Kindred Healthcare launches hostile takeover bid for Gentiva Health Services

Stephen Tweed | May 16, 2014 | News and Views
Louisville, Kentucky based Kindred Healthcare yesterday (5-15-14) announced a bid to buy all of the outstanding shares of common stock of home health giant Gentiva Health Services.  This comes after a merger offer by Kindred was rejected by Atlanta based Gentiva's board of directors.  This value of the purchase, including assumption of Gentiva's debt, would…

Louisville, Kentucky based Kindred Healthcare yesterday (5-15-14) announKindred Logoced a bid to buy all of the outstanding shares of common stock of home health giant Gentiva Health Services.  This comes after a merger offer by Kindred was rejected by Atlanta based Gentiva’s board of directors.  This value of the purchase, including assumption of Gentiva’s debt, would be $1.6 billion according to Kindred.

Gentiva’s stock price exploded with the announcement, going up 63% in the first couple hours of trading.

Kindred is the largest post-acute care provider in the U.S., reporting first quarter revenue of $1.3 billion, a 2% increase over the year-ago quarter. The company’s strategy includes a commitment to growing its Care Management division, which houses home health and hospice operations.

Gentiva is the nation’s largest provider of home health and hospice services. It reported revenue of $487.5 million for the first quarter, an increase of 17% over first quarter 2013, and is expecting net revenue of from $1.9 billion to $2.1 billion for 2014. It acquired private Harden Healthcare Holdings Inc. last September for about $409 million.

The combined company would:

  • Serve nearly 127,000 patients per day;
  • Operate in 47 states;
  • Employ approximately 110,000 individuals, making it the 78th largest private employer in the United States;
  • Deliver pro forma annual revenues of approximately $7.2 billion; and
  • Generate pro forma EBITDAR of nearly $1 billion.
Stephen Tweed
Stephen Tweed, CSP, began his journey as a business strategist in home health care in 1982. Today, Stephen is among the top thought leaders in Home Care strategy and management. He has worked with top 5% companies from across the US. He is a sought after speaker at from national and state association events.

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