Humana Completes Divestiture of Majority Interest in Kindred at Home Hospice and Personal Care Divisions to CD&R

Rhea-AI Summary

Humana Inc. (NYSE: HUM) has successfully completed its transaction with Clayton, Dubilier & Rice to divest a majority interest in the Hospice and Personal Care divisions of its subsidiary, Kindred at Home. The restructured divisions operate as a new standalone company, ensuring continued commitment to patient-centered care. Humana retains a minority ownership and strategic partnership to support these operations. The new entity, Gentiva, aims to enhance access and quality of care for patients while remaining an attractive employer for health professionals.

Positive

• Humana has completed the divestiture of the Hospice and Personal Care divisions, creating a standalone company, Gentiva.
• Humana retains minority ownership, ensuring continued support for operations and patient care.
• The transaction may streamline operations and enhance management focus on core business.

Negative

• The divestiture could lead to revenue losses in the Hospice and Personal Care segments.

LOUISVILLE, Ky.--(BUSINESS WIRE)-- Humana Inc. (NYSE: HUM) today announced that it has successfully completed its previously-announced transaction with private investment firm Clayton, Dubilier & Rice (“CD&R”) to divest a majority interest in the Hospice and Personal Care divisions of Humana’s Kindred at Home subsidiary (“KAH Hospice”). These divisions include patient-centered services for Hospice, Palliative, Community and Personal Care. Upon closing, the Hospice and Personal Care divisions have been restructured into a new standalone company.

“Humana will continue to support the long-term success of these operations through our minority ownership and ongoing strategic partnership,” said Susan Diamond, Chief Financial Officer of Humana. “Hospice and palliative services play an important role in the full continuum of care, and we are confident that this new standalone company will continue to provide patients and their families with the resources and high-quality care they need.”

“We are pleased to complete this transaction with Humana and CD&R. Our dedicated hospice and personal care company is focused on improving access, equity and quality of care for patients while remaining an employer of choice for health care professionals,” said David Causby, Chief Executive Officer of the new standalone company, soon to become Gentiva.

About Humana

Humana Inc. is committed to helping our millions of medical and specialty members achieve their best health. Our successful history in care delivery and health plan administration is helping us create a new kind of integrated care with the power to improve health and well-being and lower costs. Our efforts are leading to a better quality of life for people with Medicare, families, individuals, military service personnel, and communities at large.

To accomplish that, we support physicians and other health care professionals as they work to deliver the right care in the right place for their patients, our members. Our range of clinical capabilities, resources and tools – such as in-home care, behavioral health, pharmacy services, data analytics and wellness solutions – combine to produce a simplified experience with the goal of making health care easier to navigate and more effective.

More information regarding Humana is available to investors via the Investor Relations page of the company’s website at humana.com, including copies of:

• Annual reports to stockholders
• Securities and Exchange Commission filings
• Most recent investor conference presentations
• Quarterly earnings news releases and conference calls
• Calendar of events
• Corporate Governance information.

About Clayton, Dubilier & Rice

Clayton, Dubilier & Rice is a private investment firm with a strategy predicated on building stronger, more profitable businesses. Since inception, CD&R has managed the investment of approximately $40 billion in more than 100 companies with an aggregate transaction value of more than $175 billion. The Firm has offices in New York and London. For more information, please visit www.cdr-inc.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220811005731/en/

Investors: Lisa Stoner - Humana Investor Relations; (502) 580-2652;

lstamper@humana.com

Media: Mark Taylor - Humana Corporate Communications; (317) 753-0345;

MTaylor108@humana.com

Jon Selib - Clayton, Dubilier & Rice; (212)-407-6035;

Jselib@cdr-inc.com

Source: Humana Inc.

FAQ

What is the recent transaction involving Humana (HUM)?

Humana (HUM) has completed a transaction with Clayton, Dubilier & Rice to divest a majority interest in its Hospice and Personal Care divisions, forming a new standalone company.

How will the divestiture affect Humana (HUM) shareholders?

The divestiture might lead to revenue losses from the Hospice and Personal Care segments, impacting overall financial performance.

What is the name of the new company created from Humana's divestiture?

The new company formed from the divestiture is named Gentiva.

What role will Humana (HUM) have in the newly formed Gentiva?

Humana will retain a minority ownership and a strategic partnership to support the operations of Gentiva.