Thursday, March 10, 2016
Genesis HealthCare (Genesis), one of the nation's largest providers of post-acute care, today announced that it has signed an agreement with Compassus, a nationwide network of community-based hospice and palliative care programs, to sell the majority of Genesis' home health and hospice operations for $84 million. The transaction is expected to close within the next 90 days, subject to regulatory approvals and other customary closing conditions.
Genesis' home health and hospice operations, which were acquired via its February 2015 combination with Skilled Healthcare, are located in California, Idaho, Montana, and New Mexico. In 2015, Genesis' home health and hospice businesses had aggregate revenue and EBITDA totaling approximately $70 million and $9 million, respectively. Any remaining hospice operations in Arizona and Nevada will be closed.
"Home health and hospice services are non-strategic businesses for Genesis to operate at this time, and we believe we can better allocate the capital by de-levering our balance sheet," stated George V. Hager, Jr., Chief Executive Officer of Genesis. "We are pleased that our home health and hospice businesses will join a respected, quality provider like Compassus."
Genesis continues to look strategically to monetize other non-strategic assets, that including the home health and hospice businesses, are expected to generate $100 million to $150 million of after tax cash proceeds. Genesis intends to use the sale proceeds to repay indebtedness.
"We are excited to welcome Genesis' home health and hospice businesses to the Compassus family as we share very similar missions and values," said James Deal, Compassus CEO. "As Compassus continues to grow, this further strengthens our ability and desire to provide greater access to a continuum of high-quality post-acute care, including hospice, palliative, and home health care services to even more patients, families and the health care professionals who serve them."
Source : finance.yahoo.com
