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COPYRIGHT 2006 Business Wire
LOUISVILLE, Ky. -- Kindred Healthcare, Inc. (the "Company") (NYSE: KND) today announced that its subsidiaries have completed the acquisition of the long-term acute care ("LTAC") hospitals, skilled nursing facilities and assisted living facilities formerly operated by Commonwealth Communities Holdings LLC and certain of its affiliates (collectively, "Commonwealth") for a total purchase price of $125 million in cash.
In this transaction, the Company acquired Commonwealth's five freestanding LTAC hospitals and one hospital-in-hospital with a total of 421 hospital beds. Three of these hospitals also operate co-located subacute units and traditional skilled nursing units with a total of 168 beds. In addition, the Company acquired the operations of nine skilled nursing facilities containing 1,316 beds and four assisted living facilities with a total of 215 beds. Two of these assisted living facilities share campuses with an acquired skilled nursing facility. In the transaction, the Company also acquired the right to develop 95 additional LTAC beds in Massachusetts. All of these facilities are located in Massachusetts except for two freestanding assisted living facilities located in Maine. The assets being acquired currently generate annualized revenues of approximately $225 million.
In connection with the Commonwealth transaction, the Company entered into a new master lease with an affiliate of Health Care REIT, Inc. ("HCN")(NYSE: HCN) to lease four of the Commonwealth freestanding LTAC hospitals for an initial aggregate annual rental of approximately $6.3 million with a contingent annual rent escalator that should approximate 2.5%. The Company...
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