Gentiva to buy Harden Healthcare for $408.8M

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Associated Press

Posted on September 19, 2013 at 7:01 AM

Updated Thursday, Sep 19 at 10:32 AM

ATLANTA (AP) — Gentiva Health Services Inc. plans to purchase the home health, hospice and community care businesses of Harden Healthcare Holdings Inc. in a cash-and-stock deal worth about $408.8 million.

The Atlanta company said Thursday it will pay $355 million in cash and about $53.8 million in stock. Harden generated about $476 million in revenue last year, excluding the company's long-term care business, which its shareholders will keep.

Harden operates in 13 states and has a large presence in Texas. Gentiva provides home health and hospice care, including skilled nursing, physical, occupational, speech and neurorehabilitation services.

Harden shareholders and the boards of directors for both companies have approved the deal, which is expected to close in the fourth quarter.

Gentiva expects the acquisition to begin helping adjusted earnings, which exclude one-time costs, within the first year after it closes.

Gentiva shares closed at $11.14 on Wednesday. They have traded in a 52-week range of $8.47 to $13.85.

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