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Kindred urges stockholders to approve proposed $4.1B Humana merger

Louisville, Ky.-based Kindred Healthcare filed a proxy statement with the U.S. Securities and Exchange Commission Feb. 5, urging stockholders to approve the $4.1 billion sale of Kindred to two private equity firms and Louisville-based insurer Humana.

The SEC filing includes a letter from Kindred to shareholders notifying them of an impending special meeting, during which they will be asked to consider and vote on the proposed deal. The date of the meeting was not disclosed.

Under the proposed transaction, which the companies announced in December, Welsh, Carson, Anderson & Stowe and TPG will acquire Kindred's facility-focused arm, which includes the organization's acute care hospitals and contract rehabilitation services businesses. Kindred's home health, hospice and community care businesses will operate as a separate standalone company, with Humana retaining a 40 percent stake in the home health business.

In its SEC filing, the health system notes its board of directors has reviewed and considered the terms and conditions of the merger agreement, and recommends stockholders "vote for the proposal to adopt the merger agreement."

The filing also notes the proposed merger "cannot be completed unless Kindred stockholders adopt the merger agreement."

According to the filing, Kindred and the other parties may terminate the merger by mutual written consent if the deal is not completed on or before Aug. 17, 2018.

To access Kindred's SEC filing, click here.

More articles on transactions and valuations:
Kaufman Hall: Hospital M&A jumped 13% from 2016
Erlanger receives OK to acquire first hospital outside Tennessee: 4 things to know

UNC Health Care: BCBS of North Carolina drew 'premature and unfounded conclusions' about proposed Carolinas merger

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