ResCare Inc., a portfolio company of Onex Corp. (TSE: ONEX), is changing the direction of its home health segment.
ResCare, the nation’s largest private provider of services to people with disabilities, has been divesting its home health assets since 2014. A recent 10-K filing by Onex Corp. stated that ResCare was exiting the skilled line of business in the home care segment and transitioning to home health services without the skilled nursing. The exit resulted in a 2% decrease in revenue between 2015 and 2016, which was substantially offset by acquisitions within the home care and residential services segments, according to the filing.
On April 10, 2017, Active Day/Senior Care Centers of America, a portfolio company of Audax Private Equity, entered an acquisition and divestment agreement with ResCare Inc.
Active Day purchased one adult day health center in Fort Wayne, Indiana, from ResCare. The newly acquired center expands Active Day’s presence in Indiana to four adult day health centers and 84 adult day health centers nationally. The deal was effective on April 1, 2017, and the adult day center will now be known as Active Day of Fort Wayne.
As a part of the same agreement, Active Day sold four of its home health branches in South Carolina to ResCare. The branches, located in Charleston, Greenville, Greenwood and Sumter, offer services such as personal care assistance, light housekeeping, meal preparation and medication reminders. Neither deal disclosed a price.
Back in August 2014, ResCare sold its subsidiary, Texas Gulf Coast Home Health and Home Care, to privately-held Jordan Health Services, Inc. for an undisclosed price. The company offered skilled nursing, pediatric and hospice services to approximately 22,000 patients through 62 locations. And, in May 2016, ResCare sold eight of its home health branches in Wisconsin to Almost Family Inc. (NASDAQ: AFAM) for an undisclosed price.
