Cincinnati-based Chemed Corp.'s board of directors has approved a restructuring plan that will result in an aftertax charge in the fourth quarter of approximately $15 million to $18 million. A majority of the charges are noncash charges, and substantial savings are expected as a result of the restructuring initiatives.
Chemed's flagship Roto-Rooter subsidiary will exit various underperforming heating, ventilating and air-conditioning businesses and non-Roto-Rooter-branded plumbing operations. Divestment of these operations will enable management to focus on the core Roto-Rooter plumbing and drain-cleaning businesses, which it expects to expand through franchise acquisitions.