Since last winter, the health care company wanted to leave the skilled nursing facility business, so selling this business in an agreement with BlueMountain Capital sealed the deal. Kindred Healthcare sold the operation of 89 nursing centers in 18 states, and 36 of these facilities is leased from Ventas, Inc. Because some of the facilities are leased from Ventas, Kindred Healthcare will pay a portion of the $700 million to Ventas.
These nursing centers include over 11,000 licensed beds and 7 assisted living facilities with 380 beds. In total, there are nearly 12,000 employees that work for these facilities.
New York-based BlueMountain Capital currently manages $22 billion worth of assets, so this deal makes its portfolio even more impressive. With this sale, Kindred anticipates its total net value to increase to $910 million. Leaving the skilled nursing facility business will save Kindred about $88 million, so divesting this business is a wise decision in terms of cash flow. Smart move, Kindred!