CINCINNATI — Roto-Rooter parent Chemed Corp. in May announced that it has entered into an agreement to sell its wholly owned Patient Care subsidiary to an investor group led by Schroder Ventures Life Sciences Group.
Chemed expects to receive cash payments of $70 million. After the sale is finalized, Chemed will be involved solely in the plumbing, heating and cooling markets.
Completion of the sale is contingent upon regulatory approvals and approval by the Chemed board of directors. The sale is expected to close before year-end.
“The sale of Patient Care enables Chemed’s management to put a singular focus on its residential and commercial maintenance and repair businesses,” said Chemed President and CEO Kevin J. McNamara. “We expect to achieve significant value for Chemed’s stockholders as we reinvest the proceeds of the sale into growing our flagship Roto-Rooter subsidiary.”
Patient Care delivers home health-care services focusing on personal care provided by its staff of home-health aides. Patient Care recorded revenues of $139.2 million in 2001.