April 29, 2014

Magellan to move HQ to Arizona

Contributed photo
Contributed photo
Barry Smith, Magellan's CEO

Avon's Magellan Health Services said it will move its headquarters to Scottsdale, Ariz., to be closer to the operations of Partners Rx, which it acquired in October for $100 million.

Magellan said it would maintain its Connecticut office at 55 Nod Road, which spokeswoman Colleen Johnson said employs approximately 80 people. Only a small group of executives will move to Arizona, Johnson said, leaving Magellan with a "strong presence" in Avon.


The company has a lease for the headquarters that expires in 2019. The Scottsdale move will take place over the next few months.

Magellan said CFO Jon Rubin has decided not to make the move, but will stay for as long as one year to transition his replacement.

As of Dec. 31, Magellan had 5,949 employees based in 22 states.

The news came as Magellan reported lower net income for its first quarter, compared to a year ago.

The company booked $25.7 million in profits, or 92 cents per diluted share, down from $28.1 million, or $1.01, in the first quarter of 2012.

The drop came despite higher revenue, due to the Partners acquisition and rate increases. Revenue increased nearly 18 percent, to $966.5 million.

Magellan said the drop in profits was due to higher depreciation and amortization and a higher effective tax rate.

Read more

Higher costs reduce Magellan's 2Q net

Comments

Type your comment here:

Today's Poll Should Hartford sell city parking assets to raise revenue?<>
ADVERTISEMENTS
Most Popular on Facebook
Copyright 2014 New England Business Media