Cano Well being exploring sale after receiving buyout curiosity

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Sept 22 (Reuters) – U.S. main care supplier Cano Well being is exploring a sale and dealing with advisors after receiving acquisition curiosity, based on individuals acquainted with the matter.

Cano Well being has acquired buyout curiosity from potential consumers together with Humana Inc and CVS Well being Corp (CVS.N), the sources mentioned.

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Cano, which went public final yr by a merger with a particular function acquisition firm backed by billionaire Barry Sternlicht, acquired buyout curiosity after their poor outcomes final month, prompting them to discover a sale, one of many sources mentioned.

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A deal could possibly be finalised within the coming weeks, the sources mentioned.

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Cano declined to remark, whereas Humana and CVS mentioned they don’t touch upon rumours or hypothesis.

Each CVS and Humana are among the many firms speaking to Cano a couple of deal, the sources mentioned, and Humana has the suitable of first refusal within the occasion of a sale as a part of an settlement between the 2 firms struck in 2019. Cano shares closed up 32% after paring some earlier good points, giving it a market capitalization of about $4.1 billion.

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The Wall Road Journal first reported Cano’s talks with potential consumers 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 consumers may crumble and Cano may select to remain unbiased.

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Healthcare firms have been increasing past managing well being and pharmacy advantages with acquisitions of docs teams and surgical centres lately.

Cano operates primary-care centres in a number of U.S. states together with California, Florida, Nevada, New Mexico, Texas, Illinois and New York.

Hedge fund Third Level LLC, which owns 6.4% of Cano, has been pushing the Miami-based firm to put itself up for sale as its inventory value has tumbled because it went public.

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Extra reporting by Mrinalika Roy in Bengaluru; Enhancing by Shailesh Kuber and Josie Kao

Our Requirements: The Thomson Reuters Trust Principles.

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