Select Rehabilitation and Kindred Healthcare, LLC announced they have signed a definitive agreement under which Select will acquire Kindred’s RehabCare business line. Terms of the transaction were not disclosed.
Together, Select and RehabCare will become one of the country’s largest providers of contract rehabilitation services. The combined company will serve patients in 43 states across care settings, including skilled nursing facilities, assisted living facilities, and outpatient facilities, and provide patient-focused, outcomes-driven care that allows patients to achieve and maintain their highest quality of life.
Benjamin A. Breier, Kindred’s President and Chief Executive Officer, said, “Select’s exclusive focus on contract rehabilitation makes it an ideal partner to build upon RehabCare’s patient- and client-centric approach. Select shares many of our core values and is led by a senior management team whose number one priority is doing what is best for the patients entrusted to their care. Together, Select and RehabCare will be poised to enhance the quality and breadth of their services to customers and to bring new professional and growth opportunities for our RehabCare team members.”
“Select’s acquisition of RehabCare presents exciting growth opportunities based on the companies’ shared cultural foundation of clinical excellence, quality care provision, and outstanding customer service,” said Anna Gardina Wolfe, Select’s CEO and Co-founder. “The addition of RehabCare’s management and therapy teams will solidify Select’s best-in-class reputation, while the expanded operations will position us to leverage our technology solutions beyond the contract therapy healthcare sector.”
“When we founded Select 22 years ago with a single facility in Illinois, our vision simply was to provide a better solution for post-acute care rehabilitation,” reflected Neal Deutsch, Select’s Chairman and Co-founder. “Our ability to acquire RehabCare enhances Select’s position as a leading industry provider of contract rehabilitation services and is a true testament to the strength of our amazing leadership team, dedicated therapists, and extremely loyal customer base.”
Mr. Breier continued, “The sale of RehabCare builds on Kindred’s record of innovation and intentional disruption in its core businesses. Following the completion of the transaction, Kindred will remain the largest specialty hospital company in the United States, with a portfolio of long-term acute care hospitals, inpatient rehabilitation hospitals, acute rehabilitation units, and an emerging behavioral health line of business, all specializing in treating the most medically complex patients. We believe a more concentrated focus on our specialty hospital operations will position Kindred to achieve even greater long-term success.”
The transaction is expected to close in 2020, and is subject to customary conditions to closing, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. Guggenheim Securities LLC is serving as exclusive financial advisor to Kindred and Debevoise & Plimpton LLP is serving as Kindred’s legal advisor.
About Kindred Healthcare
Kindred Healthcare, LLC is a healthcare services company based in Louisville, Kentucky with annual revenues of approximately $3.1 billion(1). At June 30, 2020, Kindred through its subsidiaries had approximately 32,000 employees providing healthcare services in 1,731 locations in 46 states, including 64 long-term acute care hospitals, 22 inpatient rehabilitation hospitals, 10 sub-acute units, 94 inpatient rehabilitation units (hospital-based), contract rehabilitation service businesses which served 1,541 non-affiliated sites of service, and behavioral health services. Ranked as one of Fortune magazine’s Most Admired Healthcare Companies for nine years, Kindred’s mission is to help our patients reach their highest potential for health and healing with intensive medical and rehabilitative care through a compassionate patient experience.