- Humana Inc (NYSE:HUM) has agreed to divest a majority interest in the Hospice and Personal Care divisions of Humana's Kindred at Home (KAH Hospice) subsidiary to Clayton, Dubilier & Rice (CD&R).
- The divisions include patient-centered services for Hospice, Palliative, Community, and Personal Care.
- Humana had previously indicated its intent to divest a majority stake in these non-core businesses when it acquired the remaining interest in Kindred at Home in April 2021.
- Humana will divest a 60% interest in KAH Hospice and receive cash proceeds of approximately $2.8 billion, reflecting an enterprise valuation of $3.4 billion and an adjusted multiple of 12x.
- The transaction is expected to close in the third quarter of 2022.
- Upon closing the transaction, the Hospice and Personal Care divisions will be restructured into a standalone operation.
- David Causby, current President and CEO of KAH's Hospice and Personal Care divisions, will continue to lead these businesses under the new structure.
- Humana will use the proceeds to repay debt and share repurchases.
- Price Action: HUM shares are down 0.59% at $462.75 during the market session on the last check Thursday.
