Owens & Minor buys Apria, reaches deeper into home care

RICHMOND, Va., and INDIANAPOLIS – Owens & Minor, which owns Byram Healthcare, says it will buy Apria for $37.50 in cash per share of common stock, representing an equity value of about $1.45 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 combination of two complementary businesses in Byram Healthcare and Apria will enable us to better serve the entire patient journey – through the hospital into the home – ultimately furthering our mission of ‘Empowering Our Customers to Advance Healthcare,’” said Edward Pesicka, president and CEO of Owens & Minor. “In addition, this transaction diversifies our total company revenue stream by expanding our presence in the higher-growth home health care market.” 

Owens & Minor bought Byram in 2017. 

Owens & Minor also says the acquisition: 

• Expands its Patient Direct platform with access to more than 90% of insured health care customers in the U.S. 
• Broadens its Patient Direct product portfolio by combining its 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. 
• Increases its attractiveness to payors, providers and patients due to the broader product portfolio, combined with its scale, geographic footprint, and delivery model. 
• Creates a platform for future growth within this highly fragmented and growing space, with an approximate $50 billion total addressable market. 
• Enables the acceleration of support for its hospital customers seeking to expand into home health care delivery. 

The transaction, which is subject to customary closing conditions and the approval of Apria’s stockholders, is expected to close during the first half of 2022. 

Apria launched an IPO of 7.5 million shares about a year ago, in February of 2021.