Centene said Monday it has agreed to sell its Spanish and Central European businesses to Vivalto Santé, France’s third-largest private hospital company.
The deal executes on Centene’s plan to sell off non-core assets, part of a longer-term goal to improve its profit margin.
As part of the deal, Vivalto Santé will acquire Ribera Salud, Torrejón Salud and Pro Diagnostics Group.
Ribera operates hospitals and provides healthcare services in Spain and operates Torrejón Salud. Pro Diagnostics Group owns clinics that provide radiology and other services in Slovakia and the Czech Republic.
Financial terms of the deal were not disclosed.
"This transaction represents another significant milestone in our value creation plan and ongoing portfolio review," CEO Sarah London said in a Monday statement.
Centene intends to use the proceeds of the sale to repurchase stock and reduce debt.
The transaction is expected to close by the end of the year and will be subject to regulatory approvals in Spain and Slovakia.