Debevoise Advises TPG Capital and WCAS on Consortium’s $4.1 Billion Acquisition of Kindred Healthcare

19 December 2017

Debevoise & Plimpton LLP is advising TPG Capital and Welsh, Carson, Anderson & Stowe in the $4.1 billion acquisition of Kindred Healthcare Inc., an operator of home health, hospice and community care businesses, long-term acute care hospitals, inpatient rehabilitation facilities and a contract rehabilitation services business. The transaction, in which Kindred will be acquired by a consortium of three companies, TPG Capital, WCAS and Humana Inc., is expected to close during the summer of 2018.

Immediately following the acquisition of Kindred, the home health, hospice and community care businesses will be separated from Kindred and operated as a standalone company owned 40 percent by Humana, with the remaining 60 percent owned by TPG and WCAS. Kindred’s LTAC hospitals, IRFs and contract rehabilitation services businesses will be operated as a separate specialty hospital company owned by TPG and WCAS.

TPG Capital is a leading global alternative asset firm founded in 1992 with more than $73 billion of assets under management. TPG’s investment platforms are across a wide range of asset classes, including private equity, growth venture, real estate, credit, and public equity. TPG aims to build dynamic products and options for its investors while also instituting discipline and operational excellence across the investment strategy and performance of its portfolio.

WCAS focuses its investment activity in two target industries: technology and healthcare. Since its founding in 1979, WCAS has organized 16 limited partnerships with total capital of over $22 billion. WCAS has a current portfolio of approximately twenty companies with 2017 annual revenues totaling over $16 billion.

The Debevoise team is led by Andrew L. Bab, and includes partners Jennifer L. Chu, Gary M. Friedman, Henry Lebowitz, Jonathan E. Levitsky, Jonathan F. Lewis and Jeffrey E. Ross; counsel Stuart Hammer and Katarina Molnarova; and associates Julia J. Ahn, Usman Arain, Zhiyan Cao, Michelle M. Hillenbrand, Andrew G. Jamieson, Zain A. Kazmi, Samuel D. Krawiecz, Alicia E. Lee, Marina Capeto Novello, Nicholas C. Scholten and Camila Amaral Surcan.

Debevoise & Plimpton LLP is a premier law firm with market-leading practices, a global perspective and strong New York roots. We deliver effective solutions to our clients’ most important legal challenges, applying clear commercial judgment and a distinctively collaborative approach.