Kindred Healthcare sold for $9 a share
Kindred Healthcare sold to consortium for $9 per share in cash
Kindred Health sold for $9 a share.
Kindred Healthcare (KND) announced that its Board of Directors has approved a definitive agreement under which it will be acquired by a consortium of three companies: TPG Capital, Welsh, Carson, Anderson & Stowe and Humana (HUM) for approximately $4.1B in cash including the assumption or repayment of net debt.
Under the terms of the agreement, Kindred stockholders will receive $9.00 in cash for each share of Kindred common stock they hold, representing a premium of approximately 27% to Kindred's 90-day volume weighted average price for the period ending December 15, 2017, the last trading day prior to media reports regarding the potential transaction.
Immediately following the acquisition of Kindred, the home health, hospice and community care businesses will be separated from Kindred and operated as a standalone company owned 40% by Humana, with the remaining 60% owned by TPG and WCAS.
Humana will have a right to buy the remaining ownership interest in Kindred at Home over time through a put/call arrangement.
Kindred's LTAC hospitals, IRFs and contract rehabilitation services businesses will be operated as a separate specialty hospital company owned by TPG and WCAS.Upon completing the transaction, Benjamin Breier, president and CEO of Kindred, will serve as CEO of the specialty hospital company, Kindred Healthcare. David Causby, currently EVP and president of Kindred at Home, will serve as CEO of Kindred at Home.
Under a shared services agreement, Kindred Healthcare will continue to provide certain support functions to Kindred at Home for a transitional period. The transaction is expected to close during the summer of 2018.
KND closed at $9.50. HUM closed at $246.38.
Jack in the Box sold Qdoba for $305 million
Jack in the Box to sell Qdoba to Apollo affiliates for $305M
Qdoba sold for $305M.
Jack in the Box (JACK) announced that it has entered into a definitive agreement to sell Qdoba Restaurant Corporation, a wholly owned subsidiary of the company which operates and franchises more than 700 QDOBA MEXICAN EATS restaurants, to certain funds managed by affiliates of Apollo Global Management (APO).
Under the terms of the agreement, the Apollo funds will purchase Qdoba for approximately $305M in cash, subject to customary closing conditions and adjustments.
The transaction is expected to close by April 2018.
The Company expects to use the net cash proceeds after tax and transaction costs to retire outstanding debt under its term loan, as required by the terms of its credit facility.
Lenny #Comma, chairman and CEO of Jack in the Box Inc., said, "For the past several months, we have worked closely with our financial advisors and evaluated various strategic alternatives with respect to Qdoba, including a sale or spin-off, as well as opportunities to refranchise company restaurants.
Following the completion of this robust process, our Board of Directors has determined that the sale of Qdoba is the best alternative for enhancing shareholder value and is consistent with the Company's desire to transition to a less capital-intensive business model.
The Company intends to provide guidance for fiscal 2018 in connection with its presentation at the ICR Conference on January 9, 2018.
JACK closed at $100.34. It last traded at $103.00. APO closed at $32.63.