SunLink extends pact-again
* SunLink Health Systems, Atlanta, said last week that it has extended its agreement to buy HealthMont, Franklin, Tenn., for a second time, to Sept. 30. The agreement is on hold while six-hospital SunLink waits for the Securities and Exchange Commission to sign off on the stock sale that will complete the transaction. HealthMont shareholders will receive a stake in SunLink, which already is operating HealthMont's two hospitals. SunLink said it expects to complete the deal in late summer.
Select Medical to buy Kessler
* Select Medical Corp., Mechanicsburg, Pa., agreed last week to buy Kessler Rehabilitation Corp., West Orange, N.J., for approximately $230 million minus the company's debt. Privately held Kessler operates 92 outpatient clinics in 10 states and five rehabilitation hospitals in New Jersey and Maryland. The company reported revenue of $228 million in 2002. The transaction is expected to close in the third quarter, subject to regulatory approval. Select Medical operates 75 specialty hospitals and 739 rehabilitation clinics in the U.S. and Canada.
Kindred out of Fla., Texas
* Kindred Healthcare, Louisville, Ky., said last week it completed the divestiture of all of its Florida and Texas nursing homes. The company expects to record a second-quarter loss of $55 million to $60 million in connection with the sales. The deal was part of Kindred's plan to exit Florida because of the high cost of resident liability insurance. Kindred owned two Florida nursing homes and acquired 15 others in Florida and one in Texas from its landlord, Ventas, for approximately $64 million. Kindred expects to pay off $60 million in debt with the proceeds of the sale. "These divestitures will have a significant positive impact on our operating results going forward and demonstrate our commitment to improving our operations and enhancing shareholder value," Kindred Chairman and Chief Executive Officer Edward Kuntz said in a written statement.