Kindred Healthcare, which completed a swift exit from the nursing home business last year after becoming the second-largest for-profit nursing home chain in the U.S., announced today that it is selling its expansive RehabCare business line to Select Rehabilitation.
The result will be a rehab giant, covering more than 2,300 locations in 43 states, employing 17,000 therapists. Coverage locations will include skilled nursing facilities, assisted and independent living facilities, continuing care retirement communities, home health locations and schools.
The companies did not disclose terms of the deal, which is expected to close by the end of 2020, pending customary regulatory approvals.
“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.”
Select “shares many of our core values,” Kindred President and CEO Benjamin A. Breier said.
“Select is poised to enhance the quality and breadth of their services to customers and to bring new professional and growth opportunities for RehabCare team members,” he added. Kindred announced its intention to exit the skilled sector in 2017 and proceeded to sell off the remainder of its portfolio, at the time a fraction of what it had held but still totaling about 100 facilities.
Select Rehabilitation currently has 12,000 therapists delivering clinical services at more than 900 facilities skilled nursing, assisted living and independent living facilities in 35 states.
Truist Securities is serving as financial advisor to Glenview, IL-based Select. Transaction financing is being provided by Truist, BBVA Securities and Fifth Third Bank. Katten Muchin Rosenman LLP is serving as Select’s legal advisor.
This is a developing story. Please check back for updates.
