It will be combined with Superior Vision.
SAN ANTONIO, TX — Centerbridge Partners L.P. plans to acquire Davis Vision Inc., the managed vision care subsidiary of HVHC Inc.
Davis Vision will be combined with Centerbridge's existing managed vision care portfolio company, Superior Vision, according to a press release.
HVHC parent Highmark Inc. will acquire a minority ownership interest in the combined Davis Vision-Superior Vision company.
In a separate transaction, Centerbridge will acquire a minority equity stake in Visionworks, HVHC's optical retail subsidiary. Highmark will retain a controlling ownership interest in Visionworks.
Financial terms of the deals were not disclosed. The transactions are expected to close in the fourth quarter of 2017, subject to regulatory approval.
"We are thrilled to be partnering with Highmark and the management of all three businesses across this multidimensional transaction," said Dan Osnoss, managing director of Centerbridge. "We believe the combination of Davis Vision with Superior Vision presents the opportunity to create the leading national managed vision benefit offering with differentiated service for customers and members, and we look forward to supporting Visionworks in continuing to deliver an exceptional retail experience and in its next phase of growth. In the coming months, we will continue to work with Highmark to plan and implement a smooth transition for our respective organizations and stakeholders."
Headquartered in San Antonio, TX, HVHC and its subsidiaries constitute one of the largest vision/optical enterprises in the U.S. Together, the HVHC companies generated $1.6 billion in revenue in 2016.
"In today's dynamic health care marketplace, this is a smart, strategic decision that will best serve the needs of Highmark customers and members, as well as Visionworks, Davis Vision and Superior Vision customers and the communities that we serve," said David Holmberg, president and CEO of Highmark Health, Highmark's parent company.
Peter Bridgman will join Visionworks as CEO. He served as senior vice president and general manager for LensCrafters, senior vice president and general manager for Pearle Vision and vice president of strategy and innovation for EyeMed.
Jim Eisen, who has been with Visionworks/HVHC for the last nine years and served a three-year tenure as CEO of HVHC, has decided to step down in connection with the transaction.
The proposed transaction will provide Highmark additional capital to invest in its core businesses and in Highmark Health's strategy of "integrating healthcare delivery and insurance coverage in a new patient-centered, clinician-led model that improves health care quality, access and cost control," according to the release.
"We have a bold, transformational strategy that will redefine health care," Holmberg said. "Integrated care and coverage is the future, and Highmark Health is going to create it. This transaction is game-changing and will enable us to further accelerate the execution of our strategy — and enhance our competitive position for the benefit of our members, patients and communities — during the balance of 2017 and well into the future."