Humana signs definitive agreement to sell Concentra

Will be bought by MJ Acquisition Corporation for $1,055 billion

LOUISVILLE, Ky. (March 23, 2015) — Louisville-based Humana, the largest company in Kentucky, announced today that it has reached a definitive agreement to sell the stock of its wholly-owned subsidiary, Concentra, for $1,055 billion in cash, subject to customary adjustments.

humanaConcentra will be sold to MJ Acquisition Corporation, a joint venture between Select Medical Holdings Corporation, a leading operator of specialty hospitals and outpatient rehabilitation clinics in the U.S., and Welsh, Carson, Anderson & Stowe XII, L.P., a private equity fund, subject to customary adjustments.

Humana also reiterated its 2015 guidance for diluted earnings per common share (EPS) of $8.50 to $9.00.

Concentra is one of the nation’s largest providers of occupational health, urgent care and physical therapy services to employers and consumers across the U.S. treating more than 14 percent of all work-related injuries nationwide. Humana acquired Concentra in December 2010.

Subsequently, the assets of certain privately-operated Community Based Outpatient Clinics were transferred into Concentra. Additionally, Humana has divested certain Concentra non-core assets over the past four years.

The Concentra transaction is anticipated to close during the second quarter of 2015 subject to Hart Scott Rodino regulatory clearance and customary closing conditions. Humana anticipates using the net proceeds from the transaction to advance its strategic growth priorities, to fund additional share repurchases under its existing $2 billion authorization and for general corporate purposes.