LOUISVILLE (LBF) -- The rumors were true: Kindred Healthcare Inc. will be acquired by Humana Inc. and two private-equity firms in a $4.1 billion deal.
The companies will pay $9 in cash for each Kindred share. That's a 27 percent premium to Kindred's 90-day weighted average price, according to a news release.
The private-equity companies that are joining Humana in the acquisition are TPG Capital and Welsh, Carson, Anderson & Stowe.
When the acquisition is complete, Kindred's home health, hospice and community care businesses will be separated from Kindred and operated as a standalone company called Kindred at Home, with 40 percent owned by Humana and the remainder owned by TPG and WCAS.
Humana will have a right to buy the remaining ownership interest in Kindred at Home over time.