Centene to sell Circle Health to PureHealth

Centene Corporation has agreed to sell Circle Health Group—one the largest independent hospital operators in the UK—for an enterprise value of about $1.2 billion, company leaders announced Monday.

The St. Louis-based managed care organization signed an agreement to divest Circle Health to PureHealth, a major integrated healthcare network in the Middle East. The deal, which includes assumed debt, is expected to close in early 2024, pending regulatory approvals.

Centene CEO Sarah London said the transaction, which comes two years after the company acquired the remaining equity interests in Circle Health, “marks another milestone in our portfolio review and showcases continued momentum against our value-creation plan.”

The move further allows Centene, the largest Medicaid managed care organization in the US, to narrow its portfolio to “core lines of business.”

Farhan Malik, the managing director and group CEO of PureHealth, added that the acquisition of Circle Health, which operates 50+ hospitals across the UK, will help the company’s “journey toward creating a global healthcare network which revolutionizes patient care.”

The acquisition comes as part of PureHealth’s global expansion efforts and marks its first entry into the UK.

“Through integrating the expertise of both organizations, we positively impact the lives of patients globally,” Malik said. “PureHealth, as the region’s largest healthcare group, is well-positioned to make significant contributions to the improvement of healthcare systems and access to world-class medical services in the [United Arab Emirates] and beyond.”