Owens & Minor Finalizes Apria Acquisition
Apria will be combined with Owens & Minor’s Byram Healthcare to form the company’s new Patient Direct segment, which will be led by Apria’s Daniel Starck.
Global healthcare products and services company Owens & Minor Inc. global has closed its acquisition of national HME provider Apria Inc. in a cash purchase totaling approximately $1.6 billion.
Funded with a combination of debt and cash on hand, the deal marks the largest acquisition in Owens & Minor’s 140-year-old history, and lays the foundation for combining services from Apria with another large HME provider, Byram Healthcare, which Owens & Minor acquired in 2017.
Together the two entities create a broad portfolio of products and services for a wide range of patients with chronic and non-chronic conditions.
“Apria is a perfect complement to our Byram business,” said Edward Pesicka, president and CEO of Owens & Minor. “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.”
Apria will be combined with Byram Healthcare to form Owens & Minor’s new Patient Direct segment. This new segment will reach a wider geographic footprint and expands Owens & Minor’s home healthcare products and services portfolio to cover a range of chronic and acute care needs, including diabetes, ostomy, incontinence, wound care, home respiratory, obstructive sleep apnea and negative pressure wound therapy.
Daniel Starck, who has been Apria’s CEO since 2015, has joined Owens & Minor and will lead the Patient Direct segment as its Executive Vice President. Starck will also continue to serve as chairman of DMEScripts, the industry-driven HME eprescription company.
“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 payer,” Starck said.
“Owens & Minor continues to build momentum in the healthcare industry, expanding our Americas-based PPE and surgical product manufacturing and now accelerating our leadership position in-home healthcare,” Pesicka added. “We welcome our newest teammates from Apria and look forward to continued success in our Mission of Empowering Our Customers to Advance Healthcare.”
Evercore acted as the lead financial advisor and J.P. Morgan Securities LLC acted as financial advisor to Owens & Minor in connection with this acquisition. Owens & Minor’s legal advisor is Kirkland & Ellis LLP. Goldman Sachs & Co. LLC acted as the lead financial advisor and Citigroup Global Markets Inc. acted as financial advisor to Apria in connection with the acquisition. Apria’s legal advisor is Simpson Thacher & Bartlett LLP.