Humana Inc. has agreed to buy the slice of Kindred at Home that it doesn’t already own from two private-equity partners, in a deal that gives the home-health business an enterprise value of $8.1 billion.

The health insurer will acquire the 60% of Kindred currently held by TPG Capital and Welsh, Carson, Anderson & Stowe, according to a statement issued on Tuesday. The valuation includes the $2.4 billion equity stake in Kindred that Humana now holds.

Kindred at Home has locations in 40 states and serves more than 550,000 patients a year with home-health and hospice care.

Humana will fund the $5.7 billion transaction with a combination of cash and debt, the company said. The deal isn’t expected to have a material effect on earnings in 2021, and will “provide modest additional financial flexibility for 2022,” according to the company. Humana is scheduled to post first-quarter results early Wednesday.

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Source: Bloomberg

By John Tozzi