AUB Group has agreed to sell its holding in Altius to the Riverside Company for net cash proceeds of about $57 million, completing its exit from health and rehabilitation services.

“This sale reflects AUB’s strategy to refocus on the core businesses of insurance broking and underwriting agencies,” CEO Mike Emmett said today.

“I’m delighted with the strongly improved performance of Altius over the last year and look forward to their continued success in future as part of the Riverside family.”

AUB acquired additional equity from a minority shareholder to facilitate the sale process, increasing its holding in Altius to 75.4% from 56.9%.

Sale proceeds will be used to reduce corporate borrowings, providing additional balance sheet headroom for future mergers and acquisitions and strategic investments.

AUB says the sale will result in a post-tax profit of $10 million, after expensing $5.4 million related to a put and call option in favour of an existing Altius minority shareholder. Neither of the amounts will be reflected in underlying net profit.

Completion of the transaction is subject to usual change of control consents and is expected before the end of April.

AUB last year sold its interest in work health and safety rehabilitation service provider Allied Health and flagged that it would also be looking to exit the Altius holding.

Stakes in the two businesses were acquired in 2015 as part of a diversification strategy led by AUB’s previous CEO Mark Searles.

Altius acquirer Riverside is a global private equity firm which invests in industries including healthcare, business services, consumer brands and education and training.