Centene will sell some of its European-based hospital businesses to Vivalto Santé

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

Last year, Centene said it was evaluating strategic alternatives for its international business and was also looking to sell non-core assets to boost its profit margins.

In May, the company sold two of its pharmacy businesses for about $2.8 billion.

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Financial details of the deal with Vivalto were not disclosed, but Centene said it intends to use most of the net proceeds from the sale to buy back shares and the balance to reduce debt.

The transaction, which is expected 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 following closing.

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

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Reporting by Mrinalika Roy from Bengaluru; Edited by Shinjini Ganguli

Our standards: Thomson Reuters Trust Principles.

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