Genesis To Sell Majority Of Its Home Health And Hospice Operations

(RTTNews) - Genesis HealthCare (GEN) announced it has signed an agreement with Compassus, to sell the majority of Genesis' home health and hospice operations for $84 million.

"Home health and hospice services are non-strategic businesses for Genesis to operate at this time, and we believe we can better allocate the capital by de-levering our balance sheet," said George Hager, Jr., CEO of Genesis.

Genesis said the company continues to look strategically to monetize other non-strategic assets, that including the home health and hospice businesses, are expected to generate $100 million to $150 million of after tax cash proceeds. Genesis intends to use the sale proceeds to repay indebtedness.