Louisville, Ky.-based Kindred Healthcare signed a definitive agreement to sell its skilled nursing business to BM Eagle Holdings, a joint venture company led by BlueMountain Capital Management affiliates, for $700 million in cash.
Under the agreement, the sale will include the health system's 89 nursing centers, which boast 11,308 beds, and seven assisted living facilities.
Kindred previously inked an agreement in November 2016 to acquire the real estate for 36 of the 89 skilled nursing properties from Chicago-based healthcare real estate investment firm Ventas for $700 million. Under the agreement, Kindred maintained the right to find purchasers for the Ventas properties through Oct. 31, 2018.
Kindred's deal with BM Eagle Holdings is subject to customary regulatory approval. If approved, Kindred will pay Ventas $700 million for the 36 properties and Ventas will transition ownership of the properties to BM Eagle. Officials expect to begin the initial closing of the transaction in the third quarter of 2017 and to complete all closings by the end of the year.
"Exiting the skilled nursing facility business, in its entirety, has been a long-stated goal of our enterprise," said Benjamin Breier, president and CEO of Kindred Healthcare. "After more than two decades of nursing center operations, this announcement clears the way to closing that chapter of Kindred's story, and turning the page to the future of integrated post-acute care."