Chestnut Health Systems is selling off the division that focuses on employee assistance programs.
Chestnut Global Partners will become the property of Morneau Shepell, a Canadian firm with a U.S. subsidiary in Delaware. Chestnut Global Partners (CGP) concentrates on drug and credit counseling and mental health programs for businesses around the globe.
About 21 of Chestnut's employees in Bloomington-Normal will become workers for Morneau Shepell. Another five workers in Bloomington will remain with Chestnut and help in the transition.
Soon-to-retire Chestnut CEO Russ Hagen said the cash infusion will make Chestnut stronger and assist in construction of its clinic.
"With this acquisition by Morneau Shepell, Chestnut Global Partners takes the next step in its evolution as a global provider of employee assistance services,” Hagen said in a statement. “CGP's reputation for high-quality services that enhance the health and productivity of workers at companies across some 160 countries worldwide complements Morneau Shepell's size, scope of services, and sophisticated technology platforms.
"This is a win-win transaction, one that will benefit both organizations, their customers and the client companies’ employees worldwide," he added.
Hagen said not much synergy will be lost with the sale. He says the transaction is a good fit for Morneau Shepell, which is a much larger company than Chestnut Global Partners. Hagen said they do not currently have much internationally.
Hagen said Morneau Sheppell approached Chestnut, and the two firms have similar philosophies of care, though the Canadian company is publicly traded, and Chestnut is a not for profit.
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