WCAS in $1 billion deal with Humana

Humana has agreed to sell Concentra back to WCAS

MJ Acquisition Corporation, a joint venture between Select Medical Holdings Corporation and Welsh, Carson, Anderson & Stowe XII has acquired Concentra from Humana for $1 billion in cash.

WCAS originally sold Concentra to Humana for approximately $800 million in 2010.

Concentra is one of the nation’s largest providers of occupational health, urgent care and physical therapy services. The acquisition was part of an initiative to expand health care options for Humana members, but the company now plans to focus on primary care services after a portfolio review of non-core businesses lines.

Concentra treats approximately 14 percent of all work-related injuries nationwide.

Select Medical Holdings operates hospitals across the United States and invested with Welsh, Carson, Anderson & Stowe XII to buy the company back. Healthcare companies are a core focus area for WCAS investments. This transaction represents an early investment from Fund XII, which is currently in market targeting $3 billion.

The fund held a first close on $1.84 billion in January, PEI reported at the time.

The Concentra transaction is anticipated to close during the second quarter of 2015 subject regulatory approvals.

WCAS also announced another healthcare joint venture today with Tenet Healthcare. Through that joint venture, Tenet will pay approximately $425 million in cash for a fifty percent stake in WCAS portfolio company United Surgical Partners. WCAS first acquired United Surgical Partners in 2007 in a take-private deal. The investment came from Welsh, Carson, Anderson & Stowe X.