Health

Humana, partnering with two private equity firms, has announced a deal to buy home health provider Kindred for about $4.1 billion. Both Humana and Kindred are headquartered in Louisville.

Humana and Kindred are two of Louisville’s three biggest publicly traded companies, and each is among the city’s biggest employers. Humana employs more than 12,000 people in Louisville, and Kindred employs more than 2,300, according to Greater Louisville Inc., the city’s chamber of commerce.

Kindred operates home health, hospice and community care businesses, long-term acute care hospitals, inpatient rehabilitation facilities and a contract rehabilitation services business.

The other two companies in the deal are TPG Capital and Welsh, Carson, Anderson & Stowe.

The terms of the deal require Kindred to split in two immediately after the acquisition. The home health, hospice and community care businesses will be separated from Kindred and operated as a standalone company called Kindred at Home. Humana will own 40 percent of that (paying about $800 million) and the rest will be owned by TPG and Welsh, Carson, Anderson & Stowe.

Under a shared services agreement, Kindred Healthcare will continue to provide certain support functions to Kindred at Home for a transitional period.

“Humana is focused on enhancing our capabilities for care in the home to prioritize patient wellness while delivering high-quality care in a low-cost setting,” Humana President and CEO Bruce Broussard said in a statement Tuesday morning. “This transaction with Kindred underscores the successful and ongoing execution of our strategy by joining with the most geographically diverse home healthcare provider in the country. We are confident that these new capabilities will help Humana continue to modernize home health and meaningfully improve the member and provider experience.”

Kindred stockholders will receive $9.00 for each share of Kindred stock they hold.

News of the possible deal was first reported Saturday by the Wall Street Journal.

Disclosure: Kindred Vice President Susan Moss is a Louisville Public Media Board Member.

This story will be updated.