Humana’s Acquisition of Kindred at Home

Fried, Frank, Harris, Shriver & Jacobson LLP and Manatt, Phelps & Phillips LLP advised Humana, while Debevoise & Plimpton LLP and Mintz advised TPG Capital (TPG) and Welsh, Carson, Anderson & Stowe in the transaction.

Humana Inc. (NYSE: HUM) signed a definitive agreement to acquire the remaining 60 percent interest in Kindred at Home (KAH), the nation’s largest home health and hospice provider, from TPG Capital (TPG), the private equity platform of global alternative asset firm TPG, and Welsh, Carson, Anderson & Stowe (WCAS), a leading private equity firm focused exclusively on the healthcare and technology industries, for an enterprise value of $8.1 billion, which includes Humana’s existing equity value of $2.4 billion associated with its current 40 percent minority ownership interest.

Kindred at Home is the largest home health and hospice provider in the United States. KAH employs approximately 43,000 caregivers providing home health, hospice and community care services to over 550,000 patients annually. KAH has locations in 40 states, providing extensive geographic coverage with approximately 65 percent overlap with Humana’s individual Medicare Advantage membership.

Humana is an American health insurance company committed to helping millions of medical and specialty members achieve their best health.

Goldman Sachs & Co. LLC acted as financial advisor to Humana. Barclays and Guggenheim Securities, LLC acted as financial advisors to Kindred at Home.

The Fried Frank team advising Humana was led by corporate partner Brian T. Mangino (Picture) and included corporate partners Andrea Gede-Lange, Stewart A. Kagan, and Joshua Wechsler; executive compensation & ERISA partner Jason R. Ertel; tax partner Alan S. Kaden; corporate associates Enia L. Gyan and Alison McCormick; and tax associate Shane C. Hoffmann.

The Debevoise team advising TPG and WCAS was led by M&A partner Andrew Bab and included benefits partner Lawrence Cagney and tax partner Gary Friedman and associate Samuel Krawiecz.

The Mintz team that advised Kindred at Home was led by Managing Member of Mintz’s Washington, D.C. Office and Chair of the firm’s Health Law, Communications, Antitrust & ML Strategies Division Susan Berson and Associates Lauren Moldawer and Xavier Hardy.

Involved fees earner: Andrew Bab – Debevoise & Plimpton; Lawrence Cagney – Debevoise & Plimpton; Gary Friedman – Debevoise & Plimpton; Samuel Krawiecz – Debevoise & Plimpton; Jason Ertel – Fried Frank Harris Shriver & Jacobson; Andrea Gede-Lange – Fried Frank Harris Shriver & Jacobson; Enia Gyan – Fried Frank Harris Shriver & Jacobson; Shane Hoffmann – Fried Frank Harris Shriver & Jacobson; Alan Kaden – Fried Frank Harris Shriver & Jacobson; Stewart Kagan – Fried Frank Harris Shriver & Jacobson; Brian Mangino – Fried Frank Harris Shriver & Jacobson; Alison McCormick – Fried Frank Harris Shriver & Jacobson; Joshua Wechsler – Fried Frank Harris Shriver & Jacobson; Susan Berson – Mintz, Levin, Cohn, Ferris, Glovsky, and Popeo; Xavier Hardy – Mintz, Levin, Cohn, Ferris, Glovsky, and Popeo; Lauren Moldawer – Mintz, Levin, Cohn, Ferris, Glovsky, and Popeo;

Law Firms: Debevoise & Plimpton; Fried Frank Harris Shriver & Jacobson; Mintz, Levin, Cohn, Ferris, Glovsky, and Popeo;

Clients: Humana Inc.; Kindred at Home; TPG Capital; Welsh, Carson, Anderson & Stowe;

Martina Bellini

Author: Martina Bellini