ResCare Inc. (RSCR) said Monday it received a proposal from
Toronto-based investment firm Onex Corp. (ONEXF, OCX.T) to buy the
stake of company it doesn't already own, valuing the provider of
home care to the elderly and people with disabilities at $365.4
million.
The $12.60 a share, made Saturday, is a 24% premium to Friday's
closing price. The stock has declined 31% in the past year.
Affiliates of Onex currently hold common and preferred stock
that represents a 24.9% voting stake in the company. ResCare said
its board has formed a committee of independent directors to
evaluate the offer.
In its proposal letter, Onex notes an agreement would give
ResCare a 30-day period to solicit alternative offers, with a
termination fee equal to 3% of the company's equity valued at the
higher offer price.
Onex has been making small acquisitions of late, in March
announcing that it had bought Sport Supply Inc. (RBI) for about
$172 million.
Earlier this month, ResCare said its profit rose 14% even as
revenue declined 2.3%, with President and Chief Executive Ralph G.
Gronefeld Jr. calling the company's performance "solid despite the
extremely difficult economic environment."
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com