Cano Health exploring sale after receiving buyout interest

Sept 22 (Reuters) – U.S. main care supplier Cano Well being is exploring a sale and dealing with advisors after receiving acquisition curiosity, in accordance with individuals aware of 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.

Cano, which went public final yr by way of a merger with a particular objective 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.

A deal may very well be finalised within the coming weeks, the sources mentioned.

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 corporations speaking to Cano a couple of deal, the sources mentioned, and Humana has the fitting of first refusal within the occasion of a sale as a part of an settlement between the 2 corporations struck in 2019. Cano shares closed up 32% after paring some earlier positive aspects, giving it a market capitalization of about $4.1 billion.

The Wall Avenue 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 impartial.

Healthcare corporations 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.

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

: .