Vibra Healthcare to purchase 17 facilities for $187 million
Cumberland County-based Vibra Healthcare LLC has signed a definitive $187 million purchase agreement to acquire the operations of 17 facilities from Kindred Healthcare Inc.
The facilities are 15 long-term acute care hospitals containing a total of 1,052 licensed hospital beds; one inpatient rehabilitation hospital containing 44 beds; and one skilled nursing facility containing 135 skilled nursing center beds. They generated revenues of approximately $289 million and earnings before interest, income taxes, depreciation and amortization of approximately $20 million (including the allocation of approximately $9 million of overhead costs) for the year ended Dec. 31, 2012.
“This transaction will expand our specialty hospital and post acute continuum of care operations in several new markets while creating expanded services in markets that Vibra already serves. The scope of this acquisition furthers our strategic plan of positioning Vibra for the evolving integrated delivery model and creating scale to better address the dynamic changes in regulatory and reimbursement policy,” Brad Hollinger, Vibra’s founder, chairman and CEO, said in a news release. “We are confident this acquisition will enhance our long-term objectives while adding value immediately upon close of the transaction.”
Vibra and Kindred expect to complete the transaction through multiple closings in the third and fourth quarters of 2013, pending regulatory and other approvals. Those include Vibra finalizing its financing for the transaction and the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvement Act of 1976.
Five of the LTAC hospitals will be operated by Post Acute Medical LLC, which is also based in Cumberland County and owns and operates eight LTAC hospitals and three IRF hospitals in an existing joint venture arrangement with Vibra.
Kindred is based in Kentucky and describes itself as the largest diversified provider of post-acute care services in the United States. In a separate news release, Kindred described the sale as part of its own repositioning strategy, noting that each of the facilities is outside Kindred’s 21 designated integrated care markets. Kindred plans to put the proceeds into its integrated care markets and growing home health and hospice business.
Courtesy of the Central Penn Business Journal. Read the full article here: