Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, October 12, 2018

Article Excerpt

CIVITAS SOLUTIONS INC., $15.69, symbol CIVI on New York, is a leading provider of at-home and community-based health services to people with intellectual, developmental, physical or behavioural disabilities. Based in Boston, Civitas offers its home-care and community health services under the brand name The MENTOR Network. It employs about 23,000 people across 36 U.S. states. The company has now reportedly hired an investment bank to explore its potential sale or other strategic alternatives to deliver more value to its shareholders. Vestar Capital Partners, a New York-based private equity firm, acquired Civitas in March 2006 for an estimated $800 million. This equity firm took the company public in September 2014 at $17 a share. It still owns more than 50% of the company’s shares, but would sell its remaining investment were a sale to occur. In the three months ended June 30, 2018, Civitas’s revenue rose 8.6%, to $404.5 million from $372.3 million a year earlier. Sales were higher as a result of acquisitions and…