San Antonio’s HVHC selling eye division, could make billions

August 9, 2017

San Antonio-based vision company HVHC is selling one of its business units and a minority stake in its second to private investment firm Centerbridge Partners in a deal that could be worth billions.

HVHC, a wholly owned subsidiary of Pittsburgh-based Highmark Inc., will sell its managed vision care division Davis Vision Inc. to Centerbridge, a private investment management firm with offices in New York and London, according to a news release. Davis Vision will be combined with Centerbridge’s managed vision care portfolio company, Superior Vision, to create Davis Vision-Superior Vision company. Highmark will acquire a minority ownership in the combined company.

Centerbridge will also acquire a minority equity stake in HVHC’s Visionworks, an optical retail subsidiary.

Reuters estimated the deal to be worth almost $2 billion in an article last September, citing people familiar with the matter.

“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,” Dan Osnoss, managing director of Centerbridge, said in the news release.

The two HVHC subsidiaries generated $1.6 billion of revenue in 2016, and Visionworks says on its website it operates two manufacturing and distribution facilities in San Antonio.