Kindred also offers our employees the ability to expand their opportunities with a proven and dynamic healthcare provider. We look forward to integrating our operations with Kindred and to the continued growth and development of our combined services."
Kindred will also pay $38 million for three recently constructed nursing and rehabilitation centers in the Dallas-Fort Worth market, where Kindred already operates six hospitals and is developing a co-located hospital-based subacute unit. Kindred intends to develop two of the nursing centers into transitional care centers, focused on short-term rehabilitation and medically complex patients, and add a transitional care unit to the third nursing center.
These three nursing and rehabilitation centers have 405 beds and annual revenues of $24 million and EBITDA of $3 million.
“The nursing and rehabilitation center transaction offers us the opportunity to acquire three relatively new, owned facilities and develop them into transitional care centers to complement our existing hospital services in the Dallas-Fort Worth cluster market, where we currently operate six hospitals,” Diaz says. “This transaction also allows us to continue to add to our owned real property base.”
Both acquisitions are subject to regulatory approval and are expected to close this year. Kindred will finance both deals from its revolving credit facility, but the company is not acquiring the capital, or assuming liabilities in either deal.
In the year immediately following the transactions, Kindred said it expects to incur transition costs of between $6 million to $8 million.