Humana-Led Group to Buy Hospice Operator in $1.4 Billion Deal

By Allison Prang

Three different firms, including health insurer Humana Inc., are buying hospice operator Curo Health Services for about $1.4 billion as the consortium looks to expand its footprint in the home health-care business.

Humana, TPG Capital and Welsh, Carson, Anderson & Stowe said Monday they reached a deal to buy privately held Curo and ultimately plan to combine it with Kindred at Home Division's hospice business. The same three firms announced plans to purchase Kindred Healthcare Inc., the parent firm of Kindred at Home, in December.

When that deal is done, the two private-equity firms are going to separate Kindred at Home and will own that segment with Humana as part of a joint venture. The Kindred Healthcare deal is expected to close this summer. Kindred Healthcare shareholders approved the transaction earlier this month.

The group said the purchase of Curo isn't dependent on the Kindred at Home deal closing.

Humana will have a 40% minority stake in Curo, which operates in 22 states and has 245 locations. The Curo deal is also expected to close this summer.

Write to Allison Prang at allison.prang@wsj.com

(END) Dow Jones Newswires

April 23, 2018 08:44 ET (12:44 GMT)

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