Kindred Healthcare Inc. (KND) said Friday, June 30, it has inked a deal to sell its skilled nursing facility business for $700 million in cash to a joint venture led by alternative asset manager  BlueMountain Capital Management LLC.

The divestiture comes after Kindred in November of last year announced its decision to exit its skilled nursing facility business as both an owner and an operator.

Louisville, Ky.-based Kindred is selling 89 nursing centers with 11,308 licensed beds and seven assisted living facilities with 380 licensed beds across 18 states to the JV called BM Eagle Holdings LLC.

Thirty-six of the nursing facilities are leased from real estate investment trust Ventas Inc. (VTR) . Kindred on November 14, 2016 announced an agreement with Ventas that gives Kindred the option to buy the real estate for the 36 facilities leased from Ventas for $700 million, a deal that facilitates Kindred's exit from the skilled nursing facility business.

Kindred said on June 30 that as it closes on the sale of the Ventas properties to BlueMountain, Kindred will pay Ventas the allocable portion of the $700 million purchase price for the Ventas properties and Ventas will convey the real estate for the applicable Ventas property to BlueMountain or its designee.

Shares of Kindred closed Monday at $11.70, up 5 cents. The company has a market capitalization of $1.01 billion.

Kindred said it expects that the cash proceeds, anticipated working capital liquidation, tax benefits, retained assets and other items will result in approximate total value to Kindred of $910 million after subtracting estimated transaction and severance costs.

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