Centene to sell Spanish and Central European businesses to Vivalto Santé
Centene Corporation, an American managed care company, has agreed to divest its Spanish and Central European businesses to French hospital company Vivalto Santé for an undisclosed price.
The transaction is in line with Centene’s review of strategic alternatives for its international portfolio. The managed care company plans to use the majority of the net proceeds from the deal to repurchase stock and the balance to cut down its debt.
As part of the deal, the company will be divesting Spanish healthcare provider Ribera Salud, which is engaged in operating hospitals.
Ribera Salud offers other healthcare services and has public-private partnerships.
Also part of the deal is a public-private partnership called Torrejón Salud in the Community of Madrid, which is operated by Ribera Salud, and the Spanish healthcare provider’s subsidiary Pro Diagnostics Group.
Pro Diagnostics Group (PDG) owns clinics in Slovakia and the Czech Republic which are engaged in providing radiology and other services.
Sarah London — Centene CEO said: “This transaction represents another significant milestone in our value creation plan and ongoing portfolio review.
“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, which is controlled by Vivalto Partners, operates over 50 private hospitals in France.
The deal, which is subject to Spanish and Slovakian regulatory approvals and other conditions, is likely to be wrapped up by the end of the year.