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Navient to sell Healthcare Services business to CorroHealth as part of ongoing plan to simplify company

HERNDON, Va., Aug. 13, 2024 (GLOBE NEWSWIRE) -- Navient (Nasdaq: NAVI) announced today that it had reached an agreement to sell its Healthcare Services business to CorroHealth, a leading health technology company.

“This transaction is an important achievement in our initiative to explore strategic options for our Business Processing Solutions division and our strategic objectives to simplify our company, reduce our expense base, and enhance our flexibility,” said Dave Yowan, president and CEO of Navient. “CorroHealth is a great match for Xtend and its colleagues and clients.”

Doing business as Xtend Healthcare, Navient’s healthcare revenue cycle management organization is headquartered in Hendersonville, Tenn. CorroHealth will continue to operate Xtend from its Hendersonville offices. As part of the agreement, approximately 950 employees will join CorroHealth.

“We are very pleased to bring the Xtend team and technology to CorroHealth,” said CorroHealth CEO Pat Leonard. “This will allow us to offer an even more fully rounded suite of solutions to our customers, further strengthening their financial position, and empowering them to focus on providing high quality health care.”

“The Xtend team is excited to join a world-class health technology leader like CorroHealth,” said Mike Morris, CEO of Xtend Healthcare. “As part of the CorroHealth team, we will have a broader scope of capabilities and automation tools to offer our customers.”

The transaction is expected to close by the end of September, subject to certain conditions. Additional information can be found in the 8-K filed by Navient today. Navient was advised on the transaction by Houlihan Lokey and WilmerHale.

The purchase price for the Healthcare Services business is $365 million cash consideration, subject to customary adjustments. The amount of the net gain from the sale has not yet been determined, and the final financial statement impact of the sale will depend on, among other things, net sale proceeds and the book value at the time of closing. As of June 30, 2024, the book value of the Healthcare Services business was approximately $136 million, including $113 million of goodwill and acquired intangible assets.

Navient remains in active discussions about the potential sale of its Government Services businesses. The financial statement impact of the Government Services business process, and any resulting loss or gain, is uncertain at this time. The book value of the Government Services business as of June 30, 2024, was approximately $192 million, including $138 million of goodwill and acquired intangible assets.

About Navient Navient (Nasdaq: NAVI) provides technology-enabled education finance and business processing solutions that simplify complex programs and help millions of people achieve success. Our customer-focused, data-driven services deliver exceptional results for clients in education, healthcare, and government. Learn more at navient.com .

Contacts: Navient Media: Paul Hartwick, 302-283-4026, [email protected] Navient Investors: Jen Earyes, 703-984-6801, [email protected]

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WK Kellogg to close Omaha plant, downsize in Memphis as it shifts production to newer facilities

Lellogg’s Omaha manufacturing plant is shown Tuesday, Aug. 6, 2024, in Omaha, Neb. Kellogg’s announced on Tuesday it would be closing the Omaha manufacturing plant by end of 2026. (Nikos Frazier/Omaha World-Herald via AP)

Employees leave the Kellogg’s Omaha manufacturing plant, on Tuesday, Aug. 6, 2024, in Omaha, Neb. Kellogg’s announced on Tuesday it would be closing it’s Omaha manufacturing plant by end of 2026. (Nikos Frazier/Omaha World-Herald via AP)

A look at Kellogg’s Omaha manufacturing plant, on Tuesday, Aug. 6, 2024, in Omaha, Neb. (Nikos Frazier/Omaha World-Herald via AP)

Employees leave the Kellogg’s Omaha manufacturing plant, on Tuesday, Aug. 6, 2024, in Omaha, Neb. (Nikos Frazier/Omaha World-Herald via AP)

FILE - Striking Kellogg’s workers stand outside the company’s cereal plant in Omaha, Neb., on Dec. 2, 2021. (AP Photo/ Josh Funk, File)

Kellogg’s Special K cereal is displayed at a Costco Warehouse in Cranberry, Pa., on Jan. 12, 2023. (AP Photo/Gene J. Puskar)

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WK Kellogg Co. is closing one U.S. cereal plant and downsizing another as part of a plan to consolidate its operations in newer facilities.

The company said Tuesday it will close its Omaha, Nebraska, plant by the end of 2026. It also plans to scale back production at its plant in Memphis, Tennessee, starting next year.

WK Kellogg said it will increase production and invest in new infrastructure, equipment and technology at its plants in Battle Creek, Michigan; Lancaster, Pennsylvania; and Belleville, Ontario. The company said it plans to invest $390 million in new technology and infrastructure and will incur a one-time charge of $110 million in restructuring costs.

Battle Creek-based WK Kellogg said the plan will result in a net loss of 550 jobs, a number that includes hirings at the plants that will increase production. The company didn’t immediately respond when asked Tuesday how many workers would lose their jobs in Omaha and Memphis.

In a statement, Omaha Mayor Jean Stothert said she didn’t learn of the planned closure until Tuesday morning.

“I’m certainly disappointed that Kellogg’s would make such a significant announcement this way,” Stothert said. “After more than 75 years in Omaha, Kellogg’s will leave a big void.”

WK Kellogg’s Omaha plant was the epicenter of a strike against the company in 2021, when workers walked off the job for two months to protest a two-tier wage structure and other issues. At one point, Kellogg sued its union , saying striking workers were blocking entrances to the Omaha plant.

The strike ended in late 2021 when the company agreed to raises and other benefits.

The reorganization comes amid a decline in U.S. demand for cereal. Cereal sales boomed during the pandemic, when families were home and eating breakfast together. But they have struggled since then. Unit sales of cereal have fallen 4.2% over the last year and fell 3.6% the year before that, according to Nielsen IQ, a market researcher.

WK Kellogg Co. was formed last year when its former parent the Kellogg Co. — which was founded in 1906 — split into two companies. WK Kellogg retained the cereal business, including brands like Frosted Flakes, Fruit Loops, Rice Krispies and Raisin Bran. Kellanova, based in Chicago, houses many of the company’s best-sellers, including Pop-Tarts, Pringles, Eggo waffles and Cheez-Its.

WK Kellogg said Tuesday its net sales fell 4% to $672 million in the April-June period. The company got some boost from higher pricing and growing sales of premium products like Special K Zero. But its overall sales volumes fell by 4.8%, and the company said it felt some pressure from store-brand cereals as customers sought better value.

WK Kellogg shares dropped more than 7% Tuesday.

I hiked a mountain in the Andes to celebrate my 40th birthday. The hallucinations and violent vomiting that followed weren't part of the plan.

• Elizabeth Lavis planned to hike one of the highest mountains in the Bolivian Andes for her birthday.
• She said she climbed too quickly, lacking preparation and acclimation, and got altitude psychosis.
• She still hikes but now follows some rules to stay safe.

The condors appeared at 5,000 meters. They were not real.

I got altitude psychosis a few hundred meters from high camp as I scaled the frigid face of Huayna Potosí, one of the highest mountains in the Bolivian Andes.

My optimism, my determination, and the sugar high from my last frozen-solid Snickers bar had all but faded into a combination of low-key anxiety, aching muscles, and vertigo by the time I started hallucinating birds with giant geometrically patterned wings alighting gently on the ice-slicked rocks around me.

With the help of a phenomenal local guide and a lot of luck, I made it back down the mountain. I still do multiday treks at altitude in the Andes and Caucasus mountains, but I follow some hard rules to keep myself safe.

Altitude psychosis on the mountain

I first glimpsed Huayna Potosí, a mountain near La Paz and El Alto , when I sailed across Lake Titicaca, the massive freshwater lake linking Peru and Bolivia. I remember naively thinking, "I can climb that," and I set forth to summit on my 40th birthday.

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I climbed too quickly, without ample preparation or acclimation, and tamped down the effects of your garden-variety altitude sickness, including nausea, headaches, and fatigue, with a combination of cold-brewed coca-leaf tea , water, acetaminophen, and sugar.

But then I started hallucinating and violently vomiting as I tenuously made my way up to high camp, crampons skidding and slipping off the packed ice as exhaustion and confusion set in.

Thanks to my excellent guide, I made it to high camp and spent the night in an orange geodesic dome perched on the mountain's precarious eastern side. I didn't sleep a wink. I spent all night prying open the triangular door with a screwdriver, vomiting spectacularly on the rocks outside, and marveling at how gorgeous the stars looked at that height.

The danger zone

High-altitude psychosis generally occurs at heights of 7,000 meters or higher, though it can strike hikers trekking at lower altitudes. Once referred to as mountain madness, it's a uniquely terrifying ailment that manifests as intense hallucinations and disappears once you descend.

While high-altitude psychosis doesn't always happen in tandem with altitude sickness, my doctor speculated that my experience had a lot to do with not acclimatizing properly, overestimating my abilities, and minimizing the effects of altitude sickness through a regimen of over-the-counter medication and natural remedies like coca tea.

An article published last year in Frontiers in Psychiatry said that while there were several reports of psychosis during exposure to high altitude, the ailment hadn't been assigned to a diagnostic category.

Staying safe at altitude

I would've been in serious trouble if not for my guide. He rapidly identified the seriousness of the situation, carried my day pack the rest of the way, and helped me slowly ascend to high camp. Once there, he gave me spoonfuls of raw sugar and plenty of water and descended with me at first light.

I still love multiday trekking and mountain climbing. I just recently got back from a four-day journey through the high Caucasus, where I had to scurry up steep rock scrambles, ford rivers fed by glaciers, and walk down weaving, sharply declining cow paths for 15 miles a day.

The mountains are majestic and restorative, but they must be respected. I have new rules for staying both mentally and physically safe at altitude and on extreme outdoor adventures.

Proper acclimatization is the first rule. I like to spend at least three or four days adjusting to my new altitude. I lie low during the first day or two and take a tentative and exploratory short hike on the third or fourth. Doing this allows me to assess how my body is performing and regulating at the new heights — and a shorter, less intense hike lets me know what to expect on a longer slog.

I also limit the amount of over-the-counter medicine I take, powering through the first few fuzzy days of headache and fatigue until my body settles. I still drink coca tea to ward off some symptoms, but by listening to my body, I can ensure that it's functioning optimally and ready for the hike.

I've also learned to be more humble. While I was fairly fit and prepared to climb Huayna Potosí, I didn't consider the mental or extreme physical toll the mountain would take. Knowing your limits is tough but essential. I should've trained and acclimatized to the environment for a few extra months before taking my first step up the eastern side.

Life happens at the extremes, which is why it's always a good idea to climb that mountain . The responsible way to do it is to balance your athletic ability, stay in tune with your body's response to altitude, and observe the buddy system.

Got a personal essay about celebrating your 40th birthday? Get in touch with the editor: [email protected] .

Watch: Every piece of gear you need to summit Everest, according to a Sherpa guide

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Business succession planning: an integral part of your estate plan.

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Andrey Milvidskiy, Esq., founder and managing attorney of Milvidskiy Law Group P.C. , advises on estate planning and business succession.

For many entrepreneurs, their business is more than just a source of income—it's an extension of themselves representing years of hard work, financial investment, and emotional commitment. A shocking number of business owners—nearly 60%, according to a report from Wilmington Trust —lack a succession plan. This shortfall is not just a potential pitfall for the future but also a pressing issue that could manifest at any time due to various life events such as disability, incapacity or retirement. Business succession planning should be a comprehensive strategy that is an integral part of your estate plan to safeguard your entrepreneurial legacy, provide financial security for your family and employees, and prepare for a variety of scenarios.

Unrecognized Value Of The Business

A common mistake among small business owners is the failure to recognize the residual value of their enterprise. For many, the business is seen as a vehicle for current income but not as an asset that holds long-term value for their heirs. This shortsightedness often results in the loss of a valuable asset that could provide financial security for the owner’s family for years to come. A comprehensive succession plan not only preserves this residual value but can also enhance it.

Understanding The Full Scope Of Business Succession Planning

Business succession planning is not just about preparing for the eventual change in leadership that comes with the owner's passing. It is a multifaceted process that should also consider what happens if the owner faces disability or incapacity or decides to retire. Each of these scenarios can cause substantial upheaval in a business and result in financial hardship for stakeholders.

Statistically speaking, there is a considerable likelihood that a business owner may face a period of disability or incapacity before death. Without a succession plan that addresses this situation, the business could be thrown into turmoil. Shareholders may not agree on interim management, leading to stalled decision-making and a potential decrease in the company's value. Therefore, a succession plan should include disability insurance policies and buyout provisions and should define the triggers for these provisions. Having a power of attorney specific to the business can also mitigate legal complications in the event of incapacity.

Retirement planning is another aspect that should be considered. Many business owners find it difficult to envision their life outside their work. Nevertheless, planning for this inevitable stage is critical for a smooth transition. A structured, gradual transfer of responsibilities allows for a phased exit, making the process seamless and financially prudent.

This gradual transfer could involve a number of steps, such as training and mentoring successors, delegating key functions and responsibilities, transferring authority (access to accounts, title to business assets, licenses, etc.), the gradual transfer of business ownership interests, and ultimately, a reduction in the amount of time spent working in the business. For example, you may start by taking one to two days off every week and eventually transition to working just one day a week.

Addressing these events ahead of time places business owners in a strong position to negotiate terms that are favorable to them and their families. Absent such planning, when a health crisis or death occurs, the balance of power can quickly shift to the remaining partners or key employees within the business.

Why Comprehensive Succession Planning Matters

Not having a succession plan can lead to a variety of negative consequences, including diminished business value and a complicated tax situation for the deceased owner's family. When an owner passes away or becomes incapacitated without a plan in place, the remaining partners can gain significant leverage in dictating buyout terms.

A well-negotiated buy-sell agreement, established in advance, can counterbalance this power and protect the financial interests of all involved parties. Some important aspects of buy-sell arrangements to consider and negotiate include:

• Valuation: This is not the present value of the business, but rather the method by which the buyout price will be established in the future. The chosen method should prevent remaining partners or other interested parties from manipulating the price and forcing the family to accept a lower amount. For example, it could be based on the revenue or operating income in the preceding year or over a more extended period of time.

• Term of payment: It may be difficult for the business or remaining partners to provide a lump sum to buy out a retiring or disabled partner. A well-structured buy-sell agreement should take financial realities into account and provide for realistic payment terms.

• Definition of disability/incapacity: This is a delicate but crucial aspect that should be clearly defined. For example, consider if the person can be physically present at the office but is unable to perform any meaningful work. Or, if the person is in a hospital or rehabilitation facility, how long would it take to trigger the buy-out? Should it depend on the diagnosis and prognosis of recovery?

• Funding: Some businesses fail to fund their succession plans. When the time comes, the business or remaining partners may not be financially able to perform under the terms of the buy-sell agreement. Financial tools, including insurance policies, should be considered and even required under the buy-sell agreement.

Integrating Succession Planning Into Your Estate Plan

A comprehensive business succession plan must be harmonized with your broader estate plan. This ensures that various elements—ranging from identifying successors and fiduciaries (executors and/or trustees) to financial structuring and legal documentation—are consistent and effective. It's also important to consider how business succession planning can interact with other estate planning tools in your arsenal. This level of planning may require the coordinated effort of a team of professionals, including your financial planners, accountants and legal advisors, who should all understand the complexities of both estate and business planning. Engaging with these professionals to develop a succession plan that dovetails with your estate plan can result in a strategy that stands the test of time and protects against unforeseen complications. But it's also crucial to revisit and update your succession plan periodically.

Business succession planning is not a luxury or an issue that can be indefinitely postponed, especially when you own a small or medium-sized business. It is a necessity that involves strategic foresight and comprehensive planning. By addressing the full spectrum of possible scenarios, you can mitigate risks and protect the future of your enterprise and your family.

The information provided here is not legal advice and does not purport to be a substitute for advice of counsel on any specific matter. For legal advice, you should consult with an attorney concerning your specific situation.

Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?

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19 Facts About Tim Walz, Harris’s Pick for Vice President

Mr. Walz, the governor of Minnesota, worked as a high school social studies teacher and football coach, served in the Army National Guard and chooses Diet Mountain Dew over alcohol.

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By Simon J. Levien and Maggie Astor

• Published Aug. 6, 2024 Updated Aug. 9, 2024

Until recently, Gov. Tim Walz of Minnesota was a virtual unknown outside of the Midwest, even among Democrats. But his stock rose fast in the days after President Biden withdrew from the race, clearing a path for Ms. Harris to replace him and pick Mr. Walz as her No. 2.

Here’s a closer look at the Democrats’ new choice for vice president.

1. He is a (very recent) social media darling . Mr. Walz has enjoyed a groundswell of support online from users commenting on his Midwestern “dad vibes” and appealing ordinariness.

2. He started the whole “weird” thing. It was Mr. Walz who labeled former President Donald J. Trump and his running mate, Senator JD Vance of Ohio, “weird” on cable television just a couple of weeks ago. The description soon became a Democratic talking point.

3. He named a highway after Prince and signed the bill in purple ink. “I think we can lay to rest that this is the coolest bill signing we’ll ever do,” he said as he put his name on legislation declaring a stretch of Highway 5 the “Prince Rogers Nelson Memorial Highway” after the musician who had lived in Minnesota.

4. He reminds you of your high school history teacher for a reason. Mr. Walz taught high school social studies and geography — first in Alliance, Neb., and then in Mankato, Minn. — before entering politics.

5. He taught in China in 1989 and speaks some Mandarin. He went to China for a year after graduating from college and taught English there through a program affiliated with Harvard University.

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