Apria Inc., an Indianapolis-based supplier of oxygen kits, sleep apnea masks and other home health equipment, has agreed to be purchased by global health products distributor Owens & Minor Inc. .of Richmond, Va., for approximately $1.6 billion, the two companies announced Monday morning.
The deal is worth $37.50 per share, a 26% premium to Apria’s closing price on Friday. Shares of Apria jumped about 25% on Monday in pre-trade activity on the news. The agreement includes the assumption of approximately $150 million in debt.
It’s unclear what the deal will mean for Apria’s local presence. The company moved its headquarters to Indianapolis from the Los Angeles area about a year ago and went public in February. About 50 people work here.
Owens & Minor, a supplier of medical and surgical products, did not say what it plans to do with Apria’s local operations. In an email to IBJ, Apria called the combination “an exciting milestone” but did not say what would happen to Indianapoliis operations after the deal closes.
“Apria remains focused on serving its patients and driving change in the durable medical equipment industry,” the email reads. “Until the closing of the transaction, Apria and Owens & Minor will remain separate and independent companies and will continue to operate as such. Apria employees will not be asked to make changes to their workplaces for the moment.
The agreement will combine Owens & Minor’s product lines in diabetes, ostomy, incontinence and wound care with Apria’s product portfolio in home breathing, obstructive sleep apnea and negative pressure wound therapy. Apria rode a wave of strong demand for its oxygen products due to the chronic nature of asthma and other respiratory diseases.
Owens & Minor said the acquisition positions it to expand its product portfolio “to better serve patients throughout the patient journey.”
Apria CEO Dan Starck, who has led the company since 2015, will join Owens & Minor in an unspecified leadership role.
“I am full of energy and excited to join Owens & Minor,” Starck said in written remarks. “Both companies share cultures fueled by a commitment to customers, patients, teammates and the communities we serve. We look forward to uniting and providing our customers with the highest quality healthcare solutions. »
Apria is not a consumer product company and its brand is not well known outside of health circles. Its Indianapolis headquarters is behind a car wash, grocery store, and self-storage lot off Interstate 65, near the intersection of Emerson Avenue and Southport Road. It has approximately 6,000 employees and hundreds of locations across the country.
Before going public last year, Apria was owned by Blackstone Group, a New York investment firm, which bought it for $1.6 billion in 2008 and took it private. Blackstone remains one of the largest holders of Apria shares.
Owens & Minor posted sales of $2.5 billion in the first nine months of 2021, making it far bigger than Apria, which had sales of $676 million in the same period. .