Humana confirms sales of two units to Clayton, Dubilier & Rice

Humana Inc. on Thursday confirmed reports of a deal with private equity firm Clayton, Dubilier & Rice with an agreement to divest a majority interest in its Kindred at Home Hospice and Personal Care units of the company’s Kindred At Home unit for about $2.8 billion. The deal includes patient-centered services for hospice, palliative, community and personal care. Humana announced in April, 2021 that it planned to divest a majority stake in these non-core businesses when it acquired the remaining interest in Kindred at Home. Humana agreed to sell a 60% interest in KAH Hospice. The deal price reflects an enterprise valuation of $3.4 billion for the businesses. Humana CFO Susan Diamond said the company explored “a broad range of alternatives” and opted to retain a minority stake in the businesses. The deal is expected to close in the third quarter. KAH Hospice and Personal Care unit CEO David Causby will continue to lead these businesses. Shares of Humana rose 2% in premarket trades. The stock is up 0.4% in 2022 compared to a drop of 6.4% by the S&P 500.

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