Humana to Sell 60% Stake in KAH Hospice to CD&R for $2.8 Billion

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 [e-mail]

(END) Dow Jones Newswires

04-21-22 0806ET