The divisions will be restructured into a standalone operation. Credit: Online Marketing on Unsplash.

Humana has signed an agreement for the sale of a majority stake in the Hospice and Personal Care divisions of its Kindred at Home subsidiary (KAH Hospice) to private investment firm Clayton, Dubilier & Rice (CD&R).

Earleir, the company indicated its intent to sell a majority interest in these non-core businesses when it acquired the remaining stake in Kindred at Home last April.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Under the terms of the definitive agreement, Humana will sell a 60% stake in the business for nearly $2.8bn, reflecting an enterprise valuation of $3.4bn.

Humana chief financial officer Susan Diamond said: “While palliative and hospice services are important components in the continuum of care that Humana offers patients, we are confident that we can deliver desired patient outcomes and improved customer experiences through partnership models rather than fully owning KAH Hospice.

“With CD&R’s established physician relationships, value-based care expertise, and record of providing strategic capital to a wide range of businesses, we are certain that these divisions are well-positioned for success under the joint ownership of Humana and CD&R.”

Subject to customary state and federal regulatory approvals, the transaction is expected to close in the third quarter of this year.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Once the deal concludes, the Hospice and Personal Care divisions will be restructured into a standalone operation.

KAH Hospice and Personal Care divisions current president and CEO David Causby will continue to lead these businesses under the new structure.

Causby said: “We are excited by the new strategic partnership structure with Humana and look forward to working closely with CD&R to pursue growth that is centered on improved access, equity and quality of care across an expanded group of patients.”

Proceeds from the transaction will be used by Humana to repay debt and for share repurchases.