- Owens & Minor, Inc. (NYSE: OMI) announced it is buying Apria, Inc. (Nasdaq: APR) for $1.45 billion. These are the details
Owens & Minor, Inc. (NYSE: OMI) and Apria, Inc. (Nasdaq: APR) announced that the companies have entered into a definitive agreement pursuant to which Owens & Minor will acquire Apria for $37.50 in cash per share of common stock, representing an equity value of approximately $1.45 billion.
1.) Strengthens total company value proposition, enabling the company to better serve the entire patient journey and positions Owens & Minor as a leader in the home healthcare market. And the deal builds upon Owens & Minor’s strong capabilities in product manufacturing and healthcare services.
2.) Accelerates growth and diversifies revenue base by expanding presence in the higher-growth home healthcare market.
3.) Accretive to revenue, adjusted EBITDA, adjusted earnings per share, and enhanced free cash flow generation, enabling Owens & Minor to rapidly deleverage while continuing to invest across the business.
4.) Expands the Patient Direct platform with access to over 90 percent of insured healthcare customers in the U.S.
5.) Broadens the Patient Direct product portfolio by combining our strength in diabetes, ostomy, incontinence, and wound care, with Apria’s product portfolio strength in-home respiratory, obstructive sleep apnea, and negative pressure wound therapy. These product portfolios are complementary and do not overlap as many of these products are needed to treat the same and multiple chronic and acute conditions.
6.) Increases the attractiveness to Payors, Providers, and Patients due to the broader product portfolio, combined with our scale, geographic footprint, and delivery model.
7.) Creates a platform for future growth within this highly fragmented and growing space, with an approximate $50 billion total addressable market.
8.) Enables the acceleration of support for our hospital customers seeking to expand into home healthcare delivery.
Under the terms of the deal – which was unanimously approved by the Board of Directors of each company – Owens & Minor will buy Apria for $37.50 in cash per share of common stock, representing an equity value of approximately $1.45 billion, as well as the assumption of debt and cash for a total transaction value of approximately $1.6 billion.
This price per share represents a 26% and 24% premium over Apria’s closing share price on January 7, 2022, and 30-day volume-weighted average price, respectively.
The deal is subject to customary closing conditions and the approval of Apria’s stockholders and is expected to close during the first half of 2022.
“I’m very excited about the acquisition of Apria, which will strengthen our total company value proposition. The combination of two complementary businesses in Byram Healthcare and Apria will enable us to better serve the entire patient journey – through the hospital and into the home – ultimately furthering our mission of Empowering Our Customers to Advance Healthcare. In addition, this transaction diversifies our total company revenue stream by expanding our presence in the higher-growth home healthcare market.”
“We are impressed by what Apria has built for its customers, and I look forward to welcoming Dan Starck and the Apria team to Owens & Minor upon close.”
— Edward A. Pesicka, President & Chief Executive Officer of Owens & Minor
“I am energized and enthusiastic to join Owens & Minor. Both companies share cultures fueled by a commitment to customers, patients, teammates and the communities we serve. We look forward to joining together and delivering the highest quality healthcare solutions to our customers.”
— Dan Starck, Chief Executive Officer of Apria