Kindred Healthcare Inc. (KND) announced that it has signed a definitive merger agreement to acquire Centerre Healthcare Corporation, a national company dedicated to operating Inpatient Rehabilitation Hospitals, for a purchase price of about $195 million in cash.
Centerre currently operates 11 Inpatient Rehabilitation Hospitals with 612 beds in partnership with some of the nation's leading acute care hospital systems through joint ventures. Centerre has two additional hospitals with a total of 90 beds under construction and scheduled to open in 2015, and a pipeline of additional potential hospitals in various stages of development.
Centerre's operations are expected to generate 2014 revenues of approximately $200 million and earnings before interest, income taxes, depreciation, amortization and rent ("EBITDAR") of approximately $48 million.
Once fully integrated, and the new and existing Inpatient Rehabilitation Hospitals mature, Kindred expects the transaction to be approximately $0.10 to $0.12 accretive to earnings.
The Centerre transaction is expected to close in the first quarter of 2015.
Kindred will establish a focused growth platform, and business line, to be known as Kindred Hospital Rehabilitation Services, which will combine the strengths of RehabCare, Kindred's Rehabilitation Hospitals and Centerre.
The business will operate in 36 states in 384 locations and will have pro forma revenues of approximately $578 million and EBITDAR of approximately $147 million and continue to operate under Kindred's RehabCare Division.
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