By Mike Boyer
The Cincinnati Enquirer

Shareholders of Roto-Rooter Inc. Monday approved a new - but familiar - name for the Cincinnati-based plumbing and drain cleaning and hospice care provider.

After a year as Roto-Rooter Inc., shareholders approved returning to the company's old name, Chemed Corp., as a better fit since its February acquisition of Vitas Healthcare Corp. of Miami.

The company's new name and old ticker symbol, CHE, should take effect immediately, Dave Williams, chief financial officer, said.

The company's $400 million acquisition of Vitas, the largest in its history, has transformed Chemed from a holding company for Roto-Rooter, the nation's largest provider of plumbing and drain cleaning services, into the largest provider of end-of-life care as well.

The acquisition doubled the company's size and triggered a sharp rise in its stock. It closed Monday at $43.11, down $1.29. Its investor profile also changed dramatically as Roto-Rooter investors sold to those interested in the hospice business.

The company also refinanced its $400 million in long-term debt and issued 2 million shares in a private placement.

CEO Kevin McNamara said the company plans to expand Vitas, which cares for an average of 8,000 patients daily in eight states in their final six months of life.

He said the company would look at internal expansion and selective acquisitions to grow Vitas.

Timothy O'Toole, Vitas president, said the hospice market is highly fragmented, with more than 3,000 programs nationally, ideal for consolidation. He said Vitas has only about 10 percent of the market in each city where it operates, which also bodes well for growth.

Company officials have said they eventually expect to spin off all or a portion of Roto-Rooter, but not before improving its operating performance. It has struggled due to a weak economy and restructuring moves.

The plumbing and drain cleaning business reported a 7 percent increase in first-quarter revenue on a roughly 1 percent increase in jobs.

---

Email mboyer@enquirer.com