Owens & Minor today announced that it has signed a definitive agreement to acquire Apria for $1.45 billion.
Apria provides home medical equipment for respiratory therapy, sleep apnea treatment, negative pressure wound therapy, and continuous glucose monitoring. The acquisition will supplement Owens & Minor’s Patient Direct portfolio of diabetes, ostomy, incontinence and wound care.
“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,’” Owens & Minor CEO and president Edward Pesicka said in a news release.
“In addition, this transaction diversifies our total company revenue stream by expanding our presence in the higher-growth home healthcare market,” Pesicka said.
Owens & Minor said that the acquisition will expand the company’s Patient Direct platform with access to over 90% of insured healthcare customers in the U.S.
Under the terms of the acquisition, Owens & Minor will acquire Apria for $37.50 in cash per share of common stock. It will also assume debt and cash for a total transaction value of approximately $1.6 billion.
OMI shares were down 6.92% apiece to $41.96 at market open. Apria (Nasdaq:APR) was up 25.15% to $37.19 apiece. MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was down 1.4%.