Update: Highmark spokesperson cannot confirm $1.65B vision unit sale

On Tuesday The Wall Street Journal reported Pittsburgh-based Highmark Health planned to sell its vision unit, known as HVHC. However, when the Pittsburgh Post-Gazette contacted a representative at Highmark, the potential sale could not be confirmed.

A spokesperson told the Post-Gazette Highmark's vision unit is "a strategic investment for Highmark," and when asked if the insurer is looking to sell HVHC, the spokesperson said it is "keeping our options open."

By selling its vision unit, Highmark could bring in approximately $2 billion to assuage its recent losses, WSJ reported.

Highmark oversees BCBS insurance plans in Delaware, Pennsylvania and West Virginia. In 2015, it lost $85 million on a revenue of $17.7 billion. The vision unit, however, held profits of $122 million from $1.5 billion revenue.

WSJ also reported over the past few months, Highmark has been working with CapM, a merger advisory firm, to negotiate with private equity buyers and other insurers. CapM told interested buyers the vision unit is expected to bring in $1.65 billion of revenue this year.

Highmark's vision unit, or HVHC, includes the chain Visionworks, which operates 700 stores in 42 states. HVHC also includes optical insurance Davis Vision in Latham, N.Y.

 

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