Kindred Healthcare Makes $533 Million Bid To Buy Gentiva Health Services

Kindred Healthcare KND offered to buy Gentiva Health Services GTIV in an equally split combination of cash and stock deal for $14.00 per share, sending Gentiva’s shares up more that 62 percent in pre-market trading.

Kindred’s offer price, which represents a 64 percent premium over the May 14 closing price of Gentiva’s stock, represents a total equity value of about $533 million.

Including Gentiva’s debt, the deal would be valued at about $1.6 billion.

“The strategic and financial benefits of the proposed transaction are highly compelling, and we are confident that it would create more value for Gentiva stakeholders than Gentiva could achieve on a standalone basis,” Kindred’s CEO Paul Diaz said.

Kindred, who also offered to increase its offer to 100 percent cash if the Gentiva Board so elects, expects the deal to be highly accretive to its earnings and cash flows generating pro forma annual revenues of about $7.2 billion and EBITDAR of nearly $1 billion.

Gentiva’s shares jumped 62.1% to $13.84 in pre-market trading.