Centene to divest Spanish and Central European businesses

Centene to divest Spanish and Central European businesses | Insurance Business America

Centene to divest Spanish and Central European businesses

As part of an ongoing review of strategic alternatives for its international portfolio, Centene Corporation has announced that it has signed a definitive agreement to sell its Spanish and Central European businesses to private hospital company Vivalto Santé.

Those businesses include:

  • Ribera Salud, a healthcare provider in Spain
  • Torrejón Salud, a public-private partnership in the community of Madrid that is operated by Ribera Salud
  • 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 Landon, 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 to provide high-quality care for patients across Europe.”

Read next: Centene Corp to slash 3,000 jobs

Vivalto Santé is the third-largest private hospital company in France, operating more than 50 private hospitals. It is controlled by Vivalto Partners, a European private equity firm focused on the healthcare industry. More than 1,000 doctors are shareholders in Vivalto Partners.

Centene intends to use the majority of the net proceeds from the sale to repurchase stock, and the balance to reduce debt.