Kindred Healthcare has sold off the first batch of skilled nursing facilities as part of its exit from the sector, the company announced on Thursday.
The first closing included 54 skilled nursing facilities in 10 states, bringing the provider around $519 million in proceeds. Twenty-two of those facilities were leased from Ventas, which carried a price tag of $488 million, the real estate investment trust said in its own announcement. The facilities are being sold to an affiliate of BlueMountain Capital Management.
The remainder of Kindred’s closings are subject to customary and regulatory conditions, the provider noted, and are expected to occur in phases until the end of 2017.
In total, Kindred’s skilled nursing exit will include the sale of nearly 90 nursing facilities and seven assisted living facilities across 18 states, with a combined total of 11,500 employees.
“We believe that the sale of our nursing facility operations will significantly enhance shareholder value, focus our attention to our higher margin and faster growing businesses, and advance our efforts to transform Kindred’s strategy,” Kindred President and CEO Benjamin Breier said in a statement.