LOUISVILLE, Ky.--(BUSINESS WIRE)--March 1, 2005--Kindred Healthcare, Inc. (the "Company") (NYSE: KND) today announced that its pharmacy subsidiary ("KPS") has signed a definitive agreement to acquire the assets of Skilled Care Pharmacy ("SCP"). SCP is a wholly owned subsidiary of Skilled Healthcare Group, Inc. SCP operates two long-term care pharmacies servicing primarily nursing facilities and assisted living facilities in southern California. The business being acquired currently generates revenues of approximately $50 million on an annualized basis and serves approximately 7,300 customer beds. The financial terms of the transaction were not disclosed. The final closing is expected to take place on or about March 31, 2005 and is subject to customary conditions to closing, including obtaining required regulatory approvals. The Company expects that the transaction will be accretive to earnings in 2005 and beyond.
