Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Cano Health exploring sale after receiving buyout interest

Published 09/22/2022, 04:12 PM
Updated 09/23/2022, 07:51 AM
© Reuters. Signage for Humana Inc. is pictured at a health facility in Queens, New York City, U.S., November 30, 2021. REUTERS/Andrew Kelly

© Reuters. Signage for Humana Inc. is pictured at a health facility in Queens, New York City, U.S., November 30, 2021. REUTERS/Andrew Kelly

By Anirban Sen, Greg Roumeliotis and David Carnevali

(Reuters) -U.S. primary care provider Cano Health is exploring a sale and working with advisors after receiving acquisition interest, according to people familiar with the matter.

Cano Health has received buyout interest from potential buyers including Humana Inc (NYSE:HUM) and CVS Health Corp (NYSE:CVS), the sources said.

Cano, which went public last year through a merger with a special purpose acquisition company backed by billionaire Barry Sternlicht, received buyout interest after their poor results last month, prompting them to explore a sale, one of the sources said.

A deal could be finalised in the coming weeks, the sources said.

Cano declined to comment, while Humana and CVS said they do not comment on rumours or speculation.

Both CVS and Humana are among the companies talking to Cano about a deal, the sources said, and Humana has the right of first refusal in the event of a sale as part of an agreement between the two companies struck in 2019. Cano shares closed up 32% after paring some earlier gains, giving it a market capitalization of about $4.1 billion.

The Wall Street Journal first reported Cano's talks with potential buyers earlier on Thursday. Bloomberg first reported Cano's talks with CVS.

The sources, who requested anonymity as these discussions are confidential, cautioned that talks with buyers could fall apart and Cano could choose to stay independent.

Healthcare companies have been expanding beyond managing health and pharmacy benefits with acquisitions of doctors groups and surgical centres in recent years.

© Reuters. Signage for Humana Inc. is pictured at a health facility in Queens, New York City, U.S., November 30, 2021. REUTERS/Andrew Kelly

Cano operates primary-care centres in several U.S. states including California, Florida, Nevada, New Mexico, Texas, Illinois and New York.

Hedge fund Third Point LLC, which owns 6.4% of Cano, has been pushing the Miami-based company to put itself up for sale as its stock price has tumbled since it went public.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.