RehabCare (RHB) Jumps 30% as Traders Cheer Triumph Healthcare Purchase
Shares of RehabCare Group Inc. (NYSE: RHB) have soared today following yesterday's announcement that the company will buy Triumph Healthcare for a reported $570 million, which is subject to adjustment.
"This transaction, our largest to date, will significantly transform our Hospital division, providing the critical mass to leverage our infrastructure and expand our capabilities in a fundamental component of the post-acute continuum," John H. Short, Ph.D, RehabCare's President and CEO said.
The combined company would represent the fourth largest post-acute hospital and third largest long-term acute healthcare company in the country once the deal closes.
Following the news, Deutsche Bank maintains its Buy rating and $28 price target on RehabCare, citing an improvement in core business and upside from the acquisition of Triumph’s 20 hospitals.
Shares of RehabCare most recently traded at $23.93, up 26.3% from yesterday's closing price.
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