Centene to sell some Europe-based hospital businesses to Vivalto Santé

July 25 (Reuters) – Centene Corp (CNC.N) said on Monday it has agreed to sell its Spanish and Central European businesses to French private hospital company Vivalto Santé, as the health insurer streamlines its portfolio.

Last year, Centene said it was evaluating strategic alternatives for its international business as well as looking to divest non-core assets to increase its profit margin.

The company in May divested two of its pharmacy businesses for about $2.8 billion, in line with the health insurer’s strategy to exit the pharmacy benefit management space.

Financial details of the deal with Vivalto were not disclosed, but Centene said it intends to use the majority of the net proceeds from the sale to repurchase stock and the balance to reduce debt.

The transaction, likely to close by the end of the year, is expected to be neutral to Centene’s adjusted diluted earnings per share in the 12-month period post-closing.

Vivalto will acquire healthcare providers Torrejón Salud and Ribera Salud, as well as Pro Diagnostics Group, which provides radiology and other services.

Reporting by Mrinalika Roy in Bengaluru; Editing by Shinjini Ganguli

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