Humana Inc. announced on Monday an agreement to sell its wholly-owned subsidiary Concentra, which provides occupational health, urgen care and physical therapy services, to MJ Acquisition for $1.055 billion in cash. MJ Acquisition is a joint venture between Select Medical Holdings Corp. and private equity fund Welsh, Carson, Anderson & Stowe XII. Humana expects to use the proceeds from the sale of Concentra, which it expects to close during the second quarter, to fund additional share repurchases. Humana also said it expects the sale to slightly reduce 2015 earnings, but still reiterated its 2015 earnings-per-share outlook of $8.50 to $9. Humana's stock, which was still inactive in premarket trade, has run up 27% year to date, while the S&P 500 has gained 2.4%.
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