Manor Care (NYSE: HCR) is a major operator of short-term post-acute and long-term care facilities. There are more than 60,000 employees and 500 skilled nursing/rehabilitation centers, outpatient rehabilitation clinics, and hospice and home health care offices.
Well, now the company wants some privacy – and has agreed to a $6.3 billion buyout. The suitor is the Carlyle Group.
In the fiscal Q1 quarter, Manor posted a 10% increase in revenues to $959 million and net income was $30 million, or $0.39 per share.
Something else that's important – that is, the company is a cash cow. In Q1, operating cash flows were a juicy $94 million.
The deal wasn't really a surprise though. Back in April, Manor retained JPMorgan (NYSE: JPM) to review "strategic alternatives."
In fact, on the news of the deal, Manor's stock price fell 1.21% to $64.50. The buyout offer is $67 per share.
Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.
Manor Care to Carlyle
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