Ventas Supports the Acquisition of Kindred Healthcare

December 19, 2017

CHICAGO–Ventas, Inc. (NYSE: VTR) said today that it supports the acquisition of leading healthcare provider Kindred Healthcare, Inc. (NYSE: KND) (“Kindred”) by a consortium (the “Consortium”) of TPG Capital (“TPG”), Welsh, Carson, Anderson & Stowe (“WCAS”) (together, the “Sponsors”) and Humana Inc. (NYSE: HUM) (“Humana”). Ventas has been a long-standing partner of Kindred and owns 30 long-term acute care (“LTAC”) and inpatient rehabilitation (“IRF”) facilities (the “Leased Facilities”) operated by Kindred.

Immediately following the acquisition, businesses now operated by Kindred will be separated and subsequently owned and operated as follows: Kindred’s LTACs, IRFs and contract rehabilitation services businesses will be operated as a separate company (“Kindred Healthcare”) owned by the Sponsors; and the home health, hospice and community care businesses will be operated as a stand-alone company (“Kindred at Home”) owned by the Consortium.

“We are delighted to support this innovative transaction. It brings together leading healthcare provider Kindred and its excellent management team with premier private equity sponsors TPG and WCAS, who have significant experience in healthcare, and Humana’s focus on integrated senior care,” said Debra A. Cafaro, Ventas chairman and CEO.

“This transaction demonstrates the immense interest from public and private investors in leading healthcare companies that are well-positioned to deliver outstanding, cost-effective care. The significant equity investment in Kindred underscores the attractive nature of our assets, Kindred’s platform and the potential of our LTACs and IRFs. We look forward to continuing our partnership with Kindred and working with the new owners as they drive above-market growth and serve increasing numbers of medically-complex patients.”

Kindred Healthcare will continue to operate the Leased Facilities under the existing Master Lease on current terms and rent, including escalations. Following the transaction, the Master Lease will be guaranteed by Kindred Healthcare, under its new ownership. Kindred Healthcare will have a significantly strengthened balance sheet upon completion of the transaction.

The transaction is expected to close during the summer of 2018.

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