ResCare Acquires Select Health Care Services
PITTSBURGH, PA, May 12, 2008 -- ResCare, Inc. (NASDAQ: RSCR) the nation's leading provider of residential, training, educational and support services for people with disabilities and special needs, announced the acquisition of Select Health Care Services, a home health care agency located in Baytown, Texas, serving 30 counties in the Houston area. Select Health Care offers programs for adult and pediatric patients that include companion care, skilled nursing, physical, occupational and speech therapy. Select Home Care revenues are primarily through Medicaid waiver payments and licensed, Medicare-certified, personal assistant services with approximately 5% coming from private duty home health services.
The Braff Group initiated the transaction, conducted negotiations, and served as exclusive merger and acquisition advisor for Select Health Care Services.
Ralph G. Gronefeld, Jr., ResCare president and chief executive officer, said, "The acquisition of Select Health Care Services expands our home care offerings in Texas and fits perfectly into our ResCare HomeCare operations nationwide. We welcome the employees of Select Health Care Services, and we look forward to working closely with them to further enhance the services offered to the people served in Houston and the surrounding areas."
“As a multi-discipline provider of home care, including pediatric, Medicare certified, and private duty services, Select Health Care was an ideal fit for ResCare and its mission of serving patients of all ages, physical conditions, and cognitive abilities”, commented Steven Braff, Managing Director of The Braff Group that led the transaction. “While over the recent past, many acquirers have targeted predominately Medicare focused providers, we are seeing more interest in firms with both Medicare and non-Medicare capabilities as buyers try to diversify and expand their service offerings. In light of the challenges of PPS reform, we expect to see this type of activity increase in the future.”
About ResCare
ResCare, with 30+ years of experience helping people reach their highest level of independence, is one of the largest providers of home care to the elderly and those with disabilities. It also offers residential and support services to people with intellectual and developmental disabilities and provides education, vocational training and job placement for people of all ages and skill levels. Based in Louisville, Kentucky, ResCare and its 42,000 dedicated employees serve daily more than 65,000 people in 37 states, Washington, D.C., Puerto Rico and in a growing number of international locations. For more information about ResCare, please visit the Company's website at http://www.rescare.com.
About The Braff Group
The Braff Group is a leading middle market merger and acquisition firm that specializes in the home health care, hospice, infusion therapy, specialty pharmacy, health care staffing, and home medical equipment market sectors. The firm provides merger and acquisition representation, strategic planning, and valuation services. Since being founded in 1998, The Braff Group has completed more than 115 transactions. In 2006, the firm was awarded Healthcare Deal of the Year by the M&A Advisor, a leading publication dedicated to middle market merger and acquisition activity, for its representation of Canadian Valley Medical Solutions – the third consecutive year The Braff Group has received this award. The firm was also recognized as a finalist for Boutique Investment Banking Firm of the Year in 2005, 2006 and 2007. Additionally, the firm has been honored as one of the fastest growing companies in the Pittsburgh Region by the Pittsburgh Business Times.
Contact:
The Braff Group
Dexter W. Braff
888-922-5169
