UnumProvident Corp. has agreed to sell its GENEX Services Inc. unit to a private equity firm.
UnumProvident, Chattanooga, Tenn., is not saying how much the private equity firm, a fund managed by Stone Point Capital L.L.C., Greenwich, Conn., will be paying for GENEX, Wayne, Pa., but it says it hopes to complete the deal by June 30 and continue to have a close relationship with GENEX.
GENEX helps employers control the cost of workers’ compensation and health insurance programs.
“While GENEX has been a solid financial contributor to UnumProvident, its specialty role in case management and medical cost containment related to the workers compensation market is no longer a core element of our overall strategic direction,” Joseph Zubretsky, a UnumProvident senior executive vice president, says in a statement about the proposed deal.
The Stone Point deal would give UnumProvident capital to strengthen its core businesses and GENEX a chance to expand its workers’ compensation business, Zubretsky says.
Provident Companies, a UnumProvident predecessor company, acquired GENEX in 1997. GENEX has 120 offices in the United States, Puerto Rico and Canada.