Humana Partners with BlackRock in $2.8B CenterWell JV & Affirms 2026 EPS Guidance

Humana Announces $2.8B Strategic Joint Venture with BlackRock & Reaffirms Guidance

Transaction Summary

Humana Inc. announced a new joint venture with funds and accounts managed by HPS Investment Partners, a subsidiary of BlackRock, Inc. BlackRock will acquire the equity stake previously held by Welsh, Carson, Anderson & Stowe (WCAS), valued at approximately $2.8 billion, in a network of nearly 150 CenterWell Senior Primary Care clinics.

Key JV Terms & Strategic Highlights

• Operational Continuity: CenterWell Senior Primary Care will continue to manage and operate all clinics in the joint venture.
• Removal of Put Option: Unlike the legacy WCAS joint ventures, the new structure excludes a put option exercisable by BlackRock, which Humana expects will result in a significant reduction of liabilities on its balance sheet.
• Purchase & Exit Rights: CenterWell retains an option to purchase clinics from the JV starting in 2028. If not all clinics are acquired by year-end 2033, BlackRock may initiate a sale process for remaining clinics, subject to CenterWell's right of first offer.
• Capital & Cost of Capital: Humana anticipates a significantly lower cost of capital under this arrangement, with additional capital deployment planned over the next two years for new clinic openings and acquisitions.

FY 2026 Guidance Affirmation

• Humana affirmed its guidance of at least $9.00 in Adjusted EPS for the fiscal year ending December 31, 2026.
• The transaction is expected to close in Q4 2026, subject to customary closing conditions and regulatory approvals.