Molina Healthcare to Acquire Certain Assets of AgeWell New York
October 07 2021 - 4:56PM
Business Wire
Deal Grows Molina’s Medicaid Managed Long Term
Care Presence in New York, Maintains Continuity of Care for Members
and Stability for State Partners
Molina Healthcare, Inc. (NYSE: MOH) (“Molina”) today announced
that it has entered into an agreement to acquire the Medicaid
Managed Long Term Care business of AgeWell New York. The purchase
price for the transaction is approximately $110 million, net of
certain tax benefits and Molina’s target allocation of required
regulatory capital.
AgeWell is a specialty managed care organization that provides
long-term care services at home or in the community for those who
are chronically ill or disabled in The Bronx, New York (Manhattan),
Queens, Kings (Brooklyn), Nassau, Westchester, and Suffolk
counties. As of August 31, 2021, AgeWell served approximately
13,000 managed long-term services and supports (“MLTSS”) members,
with full-year 2020 premium revenue of approximately $700
million.
“The addition of AgeWell to Molina’s expanding New York
footprint is not only complementary to our existing MLTSS business,
but also representative of our strategic growth strategy,” said Joe
Zubretsky, president and chief executive officer of Molina
Healthcare. “Our highest priority is to serve all Molina members
with quality care and compassion, and we anticipate a seamless
integration.”
The transaction is synergistic with Molina’s existing Senior
Whole Health of New York MLTSS business, and presents an
opportunity to leverage Molina’s fixed cost base. The transaction
is expected to be immediately accretive to Molina’s adjusted
earnings per share. Molina intends to fund the purchase with cash
on hand. The transaction is subject to applicable federal and state
regulatory approvals and the satisfaction of other customary
closing conditions. It is expected to close by the third quarter of
2022.
About Molina Healthcare
Molina Healthcare, Inc., a FORTUNE 500 company, provides managed
healthcare services under the Medicaid and Medicare programs and
through the state insurance marketplaces. Through its locally
operated health plans, Molina Healthcare served approximately 4.7
million members as of June 30, 2021. For more information about
Molina Healthcare, please visit molinahealthcare.com.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995. This press release contains
“forward-looking statements” regarding the proposed acquisition of
assets of AgeWell New York. All forward-looking statements are
based on current expectations that are subject to numerous risk
factors that could cause actual results to differ materially. Such
risk factors include, without limitation, risks related to the
timely closing of the transaction, including the need to obtain
third party consents and regulatory approvals, and any conditions
imposed on the parties in connection with consummating the
transaction. Information regarding the other risk factors to which
the Company is subject is provided in greater detail in its
periodic reports and filings with the Securities and Exchange
Commission, including the Company’s most recent Annual Report on
Form 10-K. These reports can be accessed under the investor
relations tab of the Company’s website or on the SEC’s website at
sec.gov. Given these risks and uncertainties, the Company cannot
give assurances that its forward-looking statements will prove to
be accurate. All forward-looking statements represent the Company’s
judgment as of the date hereof.
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version on businesswire.com: https://www.businesswire.com/news/home/20211007006022/en/
Investor Contact: Joseph Krocheski,
Joseph.Krocheski@molinahealthcare.com, 562-951-8382 Media
Contact: Caroline Zubieta,
Caroline.Zubieta@molinahealthcare.com, 562-951-1588
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