Austin-based Harden Healthcare Holdings Inc. has agreed to sell most of its business operations to Gentiva Health Services Inc. of Atlanta.
Harden, a leading provider of home health, hospice and community care services, has agreed to sell that part of its business to Gentiva, which will pay $408.8 million in cash and stock.
The part of the business that will be sold had operations in 13 states and generated $476 million in revenue last year.
Harden, which is a leading senior health care provider, will continue to own and operate its long-term care business, which was not included in the sale. In that business, Harden operates 49 long-term care centers in Texas and has divisions that provide pharmacy and rehabilitation services to long-term care providers.
“Harden will retain those businesses and return to its roots as a long-term care company,” said Harden CEO Lew Little.
Little said he will leave Harden at the completion of the transaction, but will continue to work with Gentiva during the transition.
Harden board chairman Steve Hicks will join the Gentiva board when the deal is completed. Hicks is also chairman of Austin-based Capstar Partners Inc., which is Harden’s controlling shareholder.
Gentiva Executive Chairman Rod Windley said the acquisition fits with industry trends.
“The increasing health care needs of an aging population and the ongoing rate pressures will fuel industry consolidation and Gentiva is positioned to be a leader in this effort,” Windley said.
The combined business is expected to take in between $2.1 billion and $2.2 billion in revenue next year.
The transaction is expected to be completed in the fourth quarter.