Onex explores $1 billion sale of its ResCare holding - sources
NEW YORK Aug 4 (Reuters) - ResCare, which provides home care services to the elderly and disabled, is in the early stages of exploring a sale that could fetch more than $1 billion, according to people familiar with the matter.
The Louisville, Kentucky-based company, which is owned by Canadian private equity firm Onex Corp, is working with investment banks Goldman Sachs Group and Jefferies on the potential sale, the people said on Monday, asking not to be named because the matter is private.
Representatives for ResCare and Onex could not be immediately reached for comment. Goldman Sachs and Jefferies declined to comment.
ResCare posted annual revenues in 2013 of around $1.6 billion, according to a company filing. The company has more than 45,000 employees and operates in 43 states, as well as Washington D.C., Puerto Rico and Canada.
Onex took an initial 25 percent stake in then-publicly traded ResCare in 2004 and acquired the rest in 2010 in a deal that valued the company at $380 million.
ResCare provides home care to the elderly, as well as educational and vocational training and job placement for all age groups.
National Mentor, a competitor owned by Vestar Capital Partners, is also exploring a sale or initial public offering, people familiar with the matter said. (Reporting by Soyoung Kim and Olivia Oran in New York; Editing by Paul Simao)