RehabCare Group Inc. (NYSE: RHB) shares soared more than 40% to close at $25 in today�s trading after the company announced that it will be acquired by Kindred Healthcare Inc. (NYSE: KND).
Kindred and RehabCare signed a definitive merger agreement under which Kindred will acquire RehabCare. As per the terms of the merger agreement, each shareholder of RehabCare will receive $26 per share in cash and 0.471 of a share of Kindred common stock. Based on Kindred�s average value during the ten trading days before the signing of the merger agreement, each REhabCare shareholder will receive a consideration of around $35 per share.
The combination of Kindred and RehabCare will result in the creation of the largest post-acute healthcare services company in the U.S., with more than $6 billion in annual revenue and operations in 46 states.
Commenting on the agreement, John H. Short, Ph.D., president and CEO of RehabCare, said that by merging with Kindred, the company will be able to deliver significant value to its stockholders and provide them with an opportunity to share the future growth of the combines company. Short further said that the company shares the same commitment to delivering leading-edge post-acute care that enhances lives.
Following the announcement of the agreement, shares of RehabCare saw a huge rally in today�s trading. The stock reached a 52-week high of $37.47 in today�s trading and ended the day 45.47% higher at $37.05, with volume up from daily average of 181,774 to 9.58 million.
St. Louis Missouri-based RehabCare Group is a leading provider of post-acute care. The company owns and operates 34 long-term acute care and rehabilitation hospitals and provides program management services in partnership with more than 1,250 hospitals and skilled nursing facilities in 42 states and Puerto Rico. The company was established in 1982.
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