THE DEAL: Kindred Healthcare Inc. plans to buy RehabCare Group Inc. for about $900 million, or $35 per share, in cash and stock. The deal also includes Kindred assuming about $400 million in debt.
MORE CONTRACTS: Kindred is the larger of the two companies. They both operate long-term acute care hospitals and nursing and rehabilitation centers. However RehabCare has a bigger contract services business. It provides therapy and consulting services to skilled nursing facilities and manages hospital-based rehabilitation facilities and programs.
TOGETHER: The companies say they will have more than $6 billion in combined annual revenue.