Centene to sell its continental European businesses to Vivalto Santé
Another milestone in Centene's value creation program and ongoing portfolio review
ST. LOUIS, July 25, 2022 /PRNewswire/ -- Centene Corporation (NYSE: CNC) announced today that as part of its previously announced review of strategic alternatives for its international portfolio, it has signed a definitive agreement to sell to Vivalto Santé its Spanish and Central European businesses, which include:
Ribera Salud, a healthcare provider in Spain, which operates hospitals and provides other healthcare services, including through public-private partnerships;
Torrejón Salud (Torrejón), a public-private partnership in the Community of Madrid which is operated by Ribera Salud; and
Pro Diagnostics Group (PDG), a subsidiary of Ribera Salud, which owns clinics providing radiology and other services in Slovakia and the Czech Republic.
"This transaction represents another significant milestone in our value creation plan and ongoing portfolio review," said Sarah London, CEO of Centene. "We are pleased to have found a leading European healthcare partner in Vivalto Santé, who we believe is best positioned to drive growth and make additional investments in Ribera Salud, Torrejón, and PDG, so they can continue providing high-quality care for patients across Europe."
Vivalto Santé is the third-largest private hospital company in France, operating more than 50 private hospitals, and is controlled by Vivalto Partners, a European private equity firm dedicated to the healthcare industry. Over 1,000 doctors are also shareholders of the group, providing a unique dual ownership and governance model. Vivalto Santé has pioneered social impact in the private hospital sector in France by becoming the first "Société à Mission" (French equivalent of a Certified B Corporation) in the sector, incorporating in its by-laws a clear "raison d'être" vis- à -vis patients "to care for and accompany patients along their care pathway and their lives" and vis-à-vis employees "to empower caregivers by emphasizing team spirit, favorable working conditions and professional inclusion." Approximately 35% of the employees are shareholders of the company.
Barclays is serving as financial advisor to Centene, and Garrigues and Havel Partners are serving as its legal counsel. Latham & Watkins is serving as legal counsel to Vivalto Partners.
Centene intends to use the majority of the net proceeds from the sale to repurchase stock and the balance to reduce debt. The transaction is expected to be neutral to Centene's adjusted diluted earnings per share in the 12-month period post-closing.
The transaction is subject to regulatory approvals in Spain and Slovakia and satisfaction of other customary closing conditions. The transaction is expected to close by the end of the year.
About Centene Corporation
Centene Corporation, a Fortune 500 company, is a leading healthcare enterprise that is committed to helping people live healthier lives. The Company takes a local approach – with local brands and local teams – to provide fully integrated, high-quality, and cost-effective services to government-sponsored and commercial healthcare programs, focusing on under-insured and uninsured individuals. Centene offers affordable and high-quality products to nearly 1 in 15 individuals across the nation, including Medicaid and Medicare members (including Medicare Prescription Drug Plans) as well as individuals and families served by the Health Insurance Marketplace, the TRICARE program, and individuals in correctional facilities. The Company also serves several international markets, and contracts with other healthcare and commercial organizations to provide a variety of specialty services focused on treating the whole person. Centene focuses on long-term growth and value creation as well as the development of its people, systems, and capabilities so that it can better serve its members, providers, local communities, and government partners.
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