Gentiva Health Services Completes Sale Of Majority Stake In CareCentrix Unit

Melville, NY - Gentiva Health Services, Inc., the nation's leading provider of comprehensive home health services, recently announced the completion of the sale of 69% of its CareCentrix unit to Water Street Healthcare Partners, a leading private equity firm focused exclusively on the health care industry, in a transaction valued at approximately $147M . CareCentrix was started by Gentiva in 1996 and is today a leading national provider of ancillary care benefit management services for major managed care organizations.

According to the definitive agreement announced on August 21, 2008, Gentiva received $84M in cash and a $25M interest-bearing seller note upon the closing of the transaction. In addition, Gentiva will retain 31% of the capital stock in CareCentrix having an ascribed value of $26M. Of the $84M in cash proceeds, $26M will be retained by Gentiva and be available to fund future acquisitions. The remaining cash proceeds will be used to repay term loan debt and reduce the Company's leverage ratio.

SOURCE: Gentiva Health Services, Inc.