(Reuters) — ResCare Inc said it agreed to be acquired by Canadian private equity firm Onex Corp in a cash deal that values the U.S. provider of home care to the elderly and disabled at $390 million, after Onex sweetened its initial bid by 65 cents a share.
The $13.25 a share deal price represents a premium of 6 percent to ResCare’s Friday close and a 30 percent premium to its closing on Aug. 13, the last trading day before Onex first offered to buy the company.
The deal permits ResCare, which also offers education, vocational training and job placement opportunities for all age groups, to solicit superior proposals from third parties during a 40-day “go shop” period ending Oct. 16.
If a superior proposal leads to an alternative deal, ResCare would have to pay a break-up fee of 2 percent of the equity value of the Onex deal.
A special committee of ResCare’s independent directors has retained Goldman, Sachs & Co. as the financial advisor.
Onex and affiliates currently own common and preferred stock representing about 24.9 percent of ResCare’s common stock, assuming conversion of the preferred stock, Louisville, Kentucky-based ResCare said in a statement.
ResCare shares, which have risen 23 percent since Onex’s initial offer, were up 6 percent to $13.21 in premarket trade. Onex shares have appreciated by 4 percent during the same period and closed at C$29.05 on Friday.