Clayton, Dubilier & Rice’s Acquisition of a 60% Interest in KAH Hospice

Fried, Frank, Harris, Shriver & Jacobson and Manatt, Phelps & Phillips advised Humana, while Debevoise & Plimpton and Ropes & Gray advised CD&R on the deal.

Humana Inc. (NYSE: HUM) signed a definitive agreement with private investment firm Clayton, Dubilier & Rice (“CD&R”) to divest a majority interest in the Hospice and Personal Care divisions of Humana’s Kindred at Home subsidiary (“KAH Hospice”). These divisions include patient-centered services for Hospice, Palliative, Community and Personal Care. Humana had previously indicated its intent to divest a majority stake in these non-core businesses when it acquired the remaining interest in Kindred at Home in April 2021.

Under the agreement, Humana will divest a 60 percent interest in KAH Hospice and receive cash proceeds of approximately $2.8 billion, reflecting an enterprise valuation of $3.4 billion.

Clayton, Dubilier & Rice is a private investment firm with a strategy predicated on building stronger, more profitable businesses. 

Humana Inc. is committed to helping our millions of medical and specialty members achieve their best health. Kindred at Home is the largest home health and hospice provider in the United States.

Goldman Sachs & Co. LLC and Barclays acted as financial advisors to Humana. Deutsche Bank Securities Inc. and UBS Investment Bank acted as financial advisors to CD&R.

The Fried Frank team was led by corporate partner Brian T. Mangino and included corporate partners Andrea Gede-Lange, Stewart A. Kagan and Joshua Wechsler; antitrust and competition partner Nathaniel L. Asker; executive compensation & ERISA partner Jason R. Ertel; intellectual property and technology partner Jason L. Greenberg; tax partners Shane C. Hoffmann and Alan S. Kaden; corporate special counsel Alex J. Speyer; corporate associates Ronald V. Distante, Whitney J. Dumeng, Yvonne Ho, Chelsea C. Lomprey, Alison McCormick, Randa J. Medley, Jeremy Merkin and Cassidy Schuma; and corporate law clerks Rachel Chernov, Noelle Graham, Mark McCormack and Jaklin Guyumjyan.

The Manatt team was led by Health Partners Robert Belfort and Randi Seigel.

The Debevoise team was led by M&A partners Christopher Anthony (Picture) and Kevin Rinker and included counsel Naomi Aoyama and Kim Le, associates Kyle Buchoff, Martha Brown, Yean Do, Hannah Levine, Jillian Mulroy and Niusha Tavassoli, finance partner Scott Selinger and law clerks Lachlan Conroy and Erick Wong, benefits partner Jonathan Lewis and law clerk Gregory Kramer, tax partner Peter Furci, associates Samuel Krawiecz and Elliott Tuchman, intellectual property counsel Caroline Geiger and associates Jarett Lewis and Paisley Piasecki, litigation associate Carolina Kupferman, real estate counsel Eddy Park and law clerk Anastasiya Kryukova and environmental counsel Stuart Hammer.

Involved fees earner: Christopher Anthony – Debevoise & Plimpton; Naomi Aoyama – Debevoise & Plimpton; Martha Brown – Debevoise & Plimpton; Kyle Buchoff – Debevoise & Plimpton; Yean Do – Debevoise & Plimpton; Peter Furci – Debevoise & Plimpton; Caroline Geiger – Debevoise & Plimpton; Stuart Hammer – Debevoise & Plimpton; Samuel Krawiecz – Debevoise & Plimpton; Carolina Kupferman – Debevoise & Plimpton; Kim Le – Debevoise & Plimpton; Hannah Levine – Debevoise & Plimpton; Jonathan Lewis – Debevoise & Plimpton; Jarett Lewis – Debevoise & Plimpton; Jillian Mulroy – Debevoise & Plimpton; Eddy Park – Debevoise & Plimpton; Paisley Piasecki – Debevoise & Plimpton; Kevin Rinker – Debevoise & Plimpton; Scott Selinger – Debevoise & Plimpton; Niusha Tavassoli – Debevoise & Plimpton; Elliott Tuchman – Debevoise & Plimpton; Nathaniel Asker – Fried Frank Harris Shriver & Jacobson; Ronald Distante – Fried Frank Harris Shriver & Jacobson; Whitney Dumeng – Fried Frank Harris Shriver & Jacobson; Jason Ertel – Fried Frank Harris Shriver & Jacobson; Andrea Gede-Lange – Fried Frank Harris Shriver & Jacobson; Jason Greenberg – Fried Frank Harris Shriver & Jacobson; Yvonne Ho – Fried Frank Harris Shriver & Jacobson; Shane Hoffmann – Fried Frank Harris Shriver & Jacobson; Alan Kaden – Fried Frank Harris Shriver & Jacobson; Stewart Kagan – Fried Frank Harris Shriver & Jacobson; Chelsea Lomprey – Fried Frank Harris Shriver & Jacobson; Brian Mangino – Fried Frank Harris Shriver & Jacobson; Alison McCormick – Fried Frank Harris Shriver & Jacobson; Randa Medley – Fried Frank Harris Shriver & Jacobson; Jeremy Merkin – Fried Frank Harris Shriver & Jacobson; Cassidy Schuma – Fried Frank Harris Shriver & Jacobson; Alex Speyer – Fried Frank Harris Shriver & Jacobson; Joshua Wechsler – Fried Frank Harris Shriver & Jacobson; Robert Belfort – Manatt, Phelps & Phillips; Randi Seigel – Manatt, Phelps & Phillips;

Law Firms: Debevoise & Plimpton; Fried Frank Harris Shriver & Jacobson; Manatt, Phelps & Phillips;

Clients: Clayton Dubilier & Rice; Humana Inc.;