Strange Tony,
In prior sellouts senior leaders took their newfound fortunes and ran. Not so with this deal. Employees are stuck with executives who sneered at wage increases over the eighteen month shop period and the eight months needed to close the deal.
Humana has ample cash/investments to buy all of Kindred with no debt, so it is odd the insurer chose to partner with two financial rapscallions and buy the Kindred at Home side over a five year period. Humana President Bruce Broussard once worked for a Welsh, Carson, Anderson and Stowe affiliate. He is partnering with his old bosses on the deal.
Kindred's debt will be refinanced as interest rates rise in volatile financial markets. Our new owners will take millions in deal fees and could use a portion of borrowings to pay themselves a dividend. It's likely interest expense will be higher after we are acquired.
Humana's Broussard said Kindred at Home's cash flow will be used for expansion, buying more home health, hospice and personal care companies. With more money going to pay interest and finance expansion what is left for the people doing the actual work? Kindred employees: Brace Yourself,
Anonymous (from a small portion of Kindred that still cares about people)
No comments:
Post a Comment