S&P: Res-Care unaffected

Standard & Poor's said Friday that the ratings and outlook on Res-Care Inc. (B/positive/--) would not be affected by the company's acquisition of residential, in-home, and foster care services provider Habilitation Opportunities of Ohio.

The acquired company services about 110 developmentally or otherwise disabled individuals and is expected to generate about $7 million of annual revenue. While the purchase price has not been disclosed, it is likely to be relatively small given the anticipated revenue from Habilitation Opportunities.

S&P said the acquisition is within Res-Care's core business line, and transactions of this type were already factored into the ratings and outlook. (S&P anticipated that Res-Care would become more acquisitive after receiving an equity infusion of about $50 million from Onex Partners LP).

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