Mega-deals drive home health M&A spending past $4 billion mark

Two blockbuster transactions in late 2017 contributed to a landmark quarter for home health M&A spending, according to the latest data from business intelligence firm Irving Levin Associates. In November, two major home health providers—LHC Group (Nasdaq: LHCG) and Almost Family (Nasdaq: AFAM)—announced their intention to merge in an all-stock deal with a total implied value of $2.4 billion.

The next month, insurance giant Humana (NYSE: HUM) announced that it is teaming with two private equity firms to acquire Kindred Healthcare (NYSE: KND), the largest home health provider in the nation. That $4.1 billion all-cash deal involved Humana buying a 40% stake in Kindred’s home health and hospice business. The home health part of the deal totaled $3.1 billion. With more than $4 billion invested in total, M&A spending on home health and hospice reached near-record levels.

Jim Moskal, Partner and Global Health Care Practice leader, provided a quote to Home Health Care News regarding the market outlook for 2018.

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