Humana Inc., the Louisville, Kentucky-headquartered third-largest health insurer in the United States, said late on Tuesday that the company, ranked 52nd on the Fortune 500 list, would purchase a 60 per cent stake which it did not already own in Kindred at Home from TPG Capital for a stark upsum of $5.7 billion, laying off the groundwork to stretch out its patient care business.
In point of fact, latest move from Humana Inc., whose insurance business is mostly centred on American individuals under the US Government’s Medicare program for elderly or disabled, came forth as the US-based health insurer looks to enhance its health outcomes and slash expenses by capitalizing on in-home health and hospice services of Kindred at Home.
Humana Inc. alongside two private equity firms such as Welsh and Carson, Anderson & Stowe and TPG Capital had purchased Kindred at Home, back in the December of 2017 for a lump-sum of $810 million, while Humana had been holding a 40 per cent stake on the in-home health services provider.
Humana seeks a public listing for Kindred at Home
On top of that, although Humana would be the sole owner of Kindred’s hospice and community care operations along with in-home patient care services following the takeover, the health insurer was quoted saying it had little intent to maintain a majority stake in Kindred’s hospice and community care operations, while the American health insurer could explore a potential public listing or a divestiture of Kindred’s hospice and community care operation, which would be led by Kindred at Home’s current Chief David Causby.
Alongside this, according to the financial facades of the deal, latest takeover deal for Kindred at Home would value the company at $8.1 billion including Humana’s existing equity value of $2.4 billion stemming from a 40 per cent stake it had already held in the company.