Clayton Dubilier & Rice to Buy 55% Stake in Cardinal Health's NaviHealth

   By Chris Wack

Clayton, Dubilier & Rice announced Wednesday that some of its managed funds will jointly invest in Cardinal Health Inc.'s (CAH) naviHealth, which manages post-acute benefits for health plans.

The private investment firm's funds will acquire a 55% ownership stake in naviHealth, while Cardinal Health will retain a 45% interest in the business. Cardinal Health will have a call right to reacquire the business.

NaviHealth currently serves more than two million insured members and manages care transitions for about 800 acute hospitals and 11,000 post-acute care facilities across the U.S.

When the transaction closes, naviHealth's current chief executive, Clay Richards, will retain his role and become a director on naviHealth's board. Ron Williams, former chief executive of Aetna, will become chairman of the naviHealth board. Cardinal Health and Clayton, Dubilier & Rice will each appoint three additional directors for a total of eight directors on the naviHealth board.

The deal is expected to close in the third quarter of 2018.

Cardinal Health shares were up 2.7% at $55 in premarket trading.

Write to Chris Wack at chris.wack@wsj.com

(END) Dow Jones Newswires

June 13, 2018 09:30 ET (13:30 GMT)

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