Shares of home care services provider ResCare, Inc. (Nasdaq: RSCR) surged as much as 20 percent from Friday’s closing price in morning trading on Monday after it was announced that Toronto-based investment firm, Onex offered to buy approximately 75 percent of the common and preferred shares of Res-Care for $12.60 per share, which is a 24 percent premium over Friday’s closing price of $10.14 per share.
Affiliates of Onex currently hold 24.9 percent of the common and preferred shares of Louisville-based Res-Care.
There currently are about 29 million shares outstanding.
ResCare recently reported second quarter profit of $8.1 million, or 28 cents per diluted common share, up from $7.1 million, or 25 cents per diluted common share in the same period a year ago. Second quarter revenue dipped 2 percent to $396.1 million, compared to revenue of $405.3 million for the same period in 2009. EBITDA for the second quarter of 2010 was $26.4 million versus $23.7 million in the prior year quarter.
ResCare confirmed its 2010 guidance issued on March 8, 2010, including revenues of approximately $1.6 billion and diluted earnings per common share in the range of $1.05 to $1.15.