Hospital operator Kindred to buy Integra Holdings
(Reuters) - Hospital operator Kindred Healthcare Inc (KND.N) will buy privately held IntegraCare Holdings Inc for $71 million in cash to expand its home health and hospice business in Texas.
IntegraCare's current owner private equity firm Flexpoint Ford LLC could earn an additional $4 million in cash based on the company's 2013 earnings.
Home health and hospice companies in the United States have grappled with changes in Medicare regulations, lower reimbursement rates and federal investigations into billing practices.
Kindred CEO Paul Diaz said IntegraCare would help it expand services in Dallas and Houston and would serve as a model for additional markets throughout the South.
IntegraCare currently generates annual revenue of about $71 million and EBITDA of about $9 million.
The transaction, expected to close by third quarter of 2012, will add between 7 cents and 9 cents per share to Kindred's earnings in 2013.
Shares of Louisville, Kentucky-based Kindred were up marginally at $11.40 on Monday on the New York Stock Exchange.
(Reporting By Pallavi Ail in Bangalore; Editing by Sriraj Kalluvila)