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SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
July 9, 1998
NOVACARE, INC.
(Exact name of registrant as specified in its charter)
Delaware 1-10875 13-3247827
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
1016 West Ninth Avenue
King of Prussia, Pennsylvania 19406
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (610) 992-7200
(Not Applicable)
(Former Name or Former Address, if Changed Since Last Report)
Page 1 of 5
Index to Exhibits at Page 4
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Item 5. Other Events.
On July 9, 1998, the Registrant announced that it has engaged
Salomon Smith Barney Inc. and Wasserstein Perella & Co., Inc. to explore
strategic alternatives, including a spin-off of one or more of its businesses,
as described in the press release dated July 9, 1998 (see Exhibit 99 hereto),
which press release is incorporated herein by reference.
Page 2 of 5 pages
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
NOVACARE, INC.
By: /s/ Timothy E. Foster
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Name: Timothy E. Foster
Title: Chief Executive Officer
Dated: July 10, 1998
Page 3 of 5 pages
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Index to Exhibits
<TABLE>
<CAPTION>
Exhibit Sequential
Number Description Page Location
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<S> <C> <C>
99 Press release dated July 9, 1998 5
</TABLE>
Page 4 of 5 pages
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Exhibit 99
[NOVACARE LOGO]
NEWS RELEASE
FOR IMMEDIATE RELEASE Analyst Contact: Susan J. Campbell
(AS OF JULY 9, 1998) 610-992-7425
Media Contact: David Fridling
610-992-7426
NOVACARE EVALUATING STRATEGIC ALTERNATIVES
KING OF PRUSSIA, PA., -- NovaCare, Inc. (NYSE:NOV), a leading national
provider of rehabilitation and employee services, announced today that it has
engaged Salomon Smith Barney and Wasserstein Perella & Co. to explore strategic
alternatives, including a spin-off of one or more of its businesses.
"Over the past seven years NovaCare has taken advantage of market
opportunities to establish new businesses in health care and employee services,"
said Timothy E. Foster, chief executive officer. "Today, the opportunities
available from focusing specifically on the disparate operating, market and
regulatory environments of our businesses may outweigh the synergistic value of
going forward as a single company. For that reason, we are evaluating
alternatives."
NOVACARE, INC. is a national leader in physical rehabilitation services
and employee services and a rapidly growing provider of occupational health
services. As the clinical leader in rehabilitation, the company treats more than
40,000 patients per day in cost-effective outpatient and long-term care
settings, and has achieved number one market shares in long-term care and
orthotic and prosthetic rehabilitation. In addition, NovaCare is the nation's
second largest provider of outpatient rehabilitation services. Its subsidiary,
NovaCare Employee Services, Inc., is the second largest professional employer
organization, administering the full array of human resource functions,
including the management of health care benefits and workers' compensation, for
small and medium-sized businesses.
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NOVACARE, INC.
1016 West Ninth Avenue King of Prussia, Pennsylvania 19406 610 992 7200
