Tucson-based social-services provider Providence Service Corp. said it has completed its previously announced deal to sell its behavioral- and mental-health subsidiaries to a California health-care company.
Long Beach-based Molina Healthcare Inc. paid $200 million for the two subsidiaries, Providence Human Services LLC and Providence Community Services LLC, the companies said Monday.
Providence Human Services is provides behavioral- and mental-health services in 23 states and the District of Columbia, the company said.
The divested businesses generated revenue of about $346 million in 2014 and $176 million in the first half of 2015. Providence says it plans to use half of the net cash proceeds from the transaction to prepay certain loans. The other half may be used for acquisitions, investments in long-term development of other business segments or a share buyback program, among other uses, the company said.
Providence provides non-emergency medical transportation, home nursing care and work-related social services under other subsidiaries.
