Humana to Offload Substantial Stake In Kindred At Home Hospice & Personal Care Divisions

Humana Inc 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.

Momentum17.25

Growth78.45

Quality9.07

Value61.30

Short

Medium

Long