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Kindred Healthcare completes all planned sales transactions with Vibra

Kindred Healthcare announced that it has completed the sale of two additional non-strategic facilities for $20.7M to an affiliate of Vibra Healthcare. Both of these facilities are outside of Kindred’s 21 designated Integrated Care Markets. The company previously announced the sale of 14 non-strategic facilities to Vibra for $165.8M on September 3. With the closing of these two additional facilities, the company has completed all of its planned sales transactions with Vibra. Kindred expects that the after-tax net proceeds from the sale of the two facilities, including transaction costs, will approximate $14M. Combined with the previous sale of the other 14 non-strategic facilities, the company expects that the combined after-tax proceeds, including transaction costs, will approximate $180M. In the near term, Kindred intends to use the proceeds to pay down the outstanding balance under its existing revolving credit facility. Over time, these proceeds will be reinvested in the company’s Integrated Care Markets and used to finance home health and hospice acquisitions. The company expects that these transactions with Vibra will be accretive to future earnings as the proceeds are reinvested in its Integrated Care Markets and growing care management and home health and hospice business, Kindred at Home. The sale of the Facilities will be dilutive to earnings in 2013, and management will update its 2013 earnings guidance when it releases its third quarter financial results. As previously announced, the company expects to record a pretax loss that could approximate $100M in connection with the sale of the Facilities, including a significant write-off of both goodwill and other intangible assets allocable to the disposed operations.