Humana's (HUM) new joint venture with BlackRock (BLK) for its CenterWell Senior Primary Care clinics is expected to improve financial flexibility and support growth, Truist said in a note Tuesday.

The agreement will replace Humana's existing joint ventures with Welsh, Carson, Anderson & Stowe.

Funds and accounts managed by BlackRock's HPS Investment Partners will acquire the existing partner's stake in nearly 150 clinics, valued at about $2.8 billion, while CenterWell will continue operating and managing the clinics.

The transaction is expected to close in Q4.

"The announcement is consistent with the company's recent commentary and steps (agreement to divest minority interest in Gentiva) aimed at improving financial flexibility," Truist said.

Truist maintained Humana's hold rating and $475 price target.

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