Owens & Minor (NYSE:OMI) announced today that it closed its previously announced $1.6 billion acquisition of Apria.
The Richmond, Virginia-based company previously announced the planned acquisition of Apria, a developer of home medical equipment for respiratory therapy, sleep apnea treatment, negative pressure wound therapy, and continuous glucose monitoring, in January 2022.
According to a news release, the company funded the purchase with a combination of debt and cash on hand. Earlier this month, the company launched a private offering worth $500 million in senior notes with the intention of using the proceeds to finance the Apria acquisition.
“We are excited to finalize the acquisition and for Apria to become part of Owens & Minor,” President and CEO Edward A. Pesicka said in the release. “Apria is a perfect complement to our Byram business. This portfolio expansion strengthens Owens & Minor’s position in the fast-growing home health industry and enhances our ability to support healthcare beyond the hospital for both new and existing patients.”
Owens & Minor said the acquisition creates a company with one of the broadest portfolios of complementary products to service patients with chronic and non-chronic conditions and an expanded product delivery and distribution model.
Apria will be combined with Owens & Minor’s existing Byram Healthcare business to form the company’s new patient direct segment. Apria CEO Daniel J. Starck has joined Owens & Minor and will lead the segment.
“We look forward to unleashing the full potential of our teammates in the new patient direct segment to achieve even better clinical connectivity between the patient, the provider and the payor,” Starck said.
This year, Owens & Minor intends to change its reporting structure as part of its go-to-market approach, with the patient direct and products & healthcare services segments entering the fray.
