The U.S. health insurer took full ownership of Kindred at Home last year after acquiring the remaining 60% stake it did not own from TPG Capital for $5.7 billion to expand its patient care business.
Humana (NYSE:HUM) said it intends to use proceeds from the transaction for repayment of debt and share buybacks.
The company does not anticipate a material impact to 2022 earnings from this transaction, which is expected to close in the third quarter of 2022.
Apart from hospice care, Kindred at Home also provides personal care and home health services.
Once the deal closes, the hospice and personal care divisions will be restructured into a standalone operation with David Causby, the current president and CEO of these segments, leading the business.
Goldman Sachs & Co (NYSE:GS). LLC and Barclays (LON:BARC) are acting as financial advisers to Humana, while Deutsche Bank (ETR:DBKGn) Securities Inc and UBS Investment Bank are acting as financial advisers to CD&R.
Source: Economy - investing.com
