Humana to Sell 60% Stake in KAH Hospice to CD&R for $2.8 Billion
21 April 2022 - 10:21PM
Dow Jones News
By Colin Kellaher
Humana Inc. on Thursday said it agreed to sell a 60% stake in
the hospice and personal-care divisions of its Kindred at Home unit
to private-equity firm Clayton Dubilier & Rice for cash
proceeds of about $2.8 billion.
The Louisville, Ky., health insurer said the deal reflects an
enterprise valuation of $3.4 billion for the operations and a
multiple of roughly 12 times their current year forecast for
adjusted earnings before interest, income taxes, depreciation and
amortization.
Humana had previously said it would shed a majority stake in the
divisions when it acquired the remaining interest in Kindred at
Home from a pair of private-equity firms last year for around $5.7
billion.
Humana said it expects to complete the transaction with New York
buyout firm CD&R in the third quarter, adding that it will use
proceeds from the sale to repay debt and buy back shares.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
April 21, 2022 08:06 ET (12:06 GMT)
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