Cardinal Health deals majority stake in NaviHealth to PE shop CD & R

Cardinal Health (NYSE:CAH) said this week it divested itself of its majority stake in NaviHealth to private equity firm Clayton, Dubilier & Rice, with Cardinal Health retaining the call right to reacquire the business. NaviHealth provides post-acute car programs to hospital systems, health planst, physician groups and healthcare providers as part of value-based care programs, Cardinal Health said. Through the deal, CD&R will obtain a 55% ownership stake in NaviHealth, while Dublin, Ohio-based Cardinal Health will retain an approximate 45% stake in the post-acute care focused business. “This new investment structure provides NaviHealth with the resources needed to support and accelerate its growth trajectory. NaviHealth’s leadership team, clinical expertise, and proprietary clinical decision support technology are key differentiators in a rapidly growing sector of the healthcare industry. CD&R’s understanding of NaviHealth’s business, and their relationships with current and potential customers, will help provide additional value to patients, health systems, and health plans while also allowing Cardinal Health to benefit from future success,” Cardinal Health CEO Mike Kaufmann said in a press release. After the deal closes, which Cardinal Health is hopeful to see during the third quarter of this year, current NaviHealth CEO Clay Richards will retain his role and join NaviHealth’s board, joined by CD&R funds operating advisor ...
Source: Mass Device - Category: Medical Devices Authors: Tags: Business/Financial News Mergers & Acquisitions Cardinal Health Source Type: news