Highmark Inc. said Thursday that it has reached an agreement to sell its eye care company Visionworks to VSP Global, a California company run by a network of doctors.
In the deal, the buyer is getting an eye care retailer with a footprint of more than 700 stores in nearly 40 states. The Visionworks acquisition will be the single largest VSP network investment in the company’s 65-year history, according to the announcement.
“This transaction is highly complementary to our business and marks a significant leap forward in continuing to fulfill our vision to provide access to affordable, high-quality eye care and eye wear to more people,” said Michael Guyette, president and CEO of VSP Global, based in Rancho Cordova, Calif.
The purchase price was not disclosed, and the deal is subject to regulatory approval.
Pittsburgh-based Highmark Health, Highmark’s parent company, in March reported an operating gain of $570 million for the year. That figure was down from $1.1 billion in 2017, when yearly results got a one-time bump from the $300 million sale of stakes in its Davis Vision and Visionworks business.
Highmark is now selling its controlling stake in Visionworks in the deal with VSP Global.
The doctor-governed company owns a national not-for-profit company called VSP Vision Care, which provides access to eye care for nearly 90 million members through a network of more than 40,000 doctors worldwide. It also owns Marchon Eyewear Inc., VSP Optics, Eyefinity, VSP Retail and VSP Ventures.
Visionworks is headquartered in San Antonio, Texas. It is the sixth largest specialty retail optical chain in the U.S.
Karen Hanlon, chief operating officer of Highmark Health, described the deal as a transaction that will serve the needs of both companies, their customers and the communities they serve.
The proposed transaction will provide Highmark additional capital to continue to invest in its core business and in Highmark Health’s strategy of integrating health care delivery and insurance coverage.
Tim Grant: tgrant@post-gazette.com or 412-263-1591.
First Published: June 27, 2019, 9:39 p.m.