Moline-based Deere & Company announced Friday it closed on the sale of the company’s health care operations to the nation’s second-largest health insurer: UnitedHealthcare of Minneapolis, Minn.
The transaction was announced by both companies in December.
Deere sold John Deere Health Care, Inc., to UnitedHealthcare for about $500 million in cash, and the transaction will result in a second-quarter gain for Deere of about $350 million pre-tax or $225 million after-tax.
As part of the deal, UnitedHealthcare also agreed to purchase the John Deere Health Care headquarters in downtown Moline.
Deere, one of the world’s largest equipment makers, had been in the managed health care business since creating the subsidiary in 1985. Deere said UnitedHealthcare is expected to rename John Deere Health Care within one month, and transition away from using the John Deere brand within one year.
A spokesman for UnitedHealthcare could not be reached Friday by the Quad-City Times. However, when the buyout was announced, UnitedHealthcare officials said the Quad-City area’s 80,000 customers who use John Deere Health Care will not see any immediate changes because of the takeover.
They also said one advantage to the move would be that clients now have a huge national network of health-care providers to choose from, including 500,000 physicians and thousands of medical facilities.