Owens & Minor Inc has closed the previously announced acquisition of Apria Inc. Beginning in the first quarter of 2022, Owens & Minor will change its reporting structure to reflect the company’s go-to-market approach. Its two legacy segments will be replaced with two new segments: Patient Direct and Products & Healthcare Services. Patient Direct will be a combination of Byram and Apria, while Products & Healthcare Services will be a combination of the global products, medical distribution and services businesses.
“We are excited to finalize the acquisition and for Apria to become part of Owens & Minor,” says Edward A. Pesicka, president and CEO, Owens & Minor, in a 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.”
Apria will be combined with Owens & Minor’s existing Byram Healthcare business to form the new Patient Direct segment. This new segment creates a robust commercial team with greater access to patients across a wider geographic footprint. It also expands Owens & Minor’s home healthcare 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. The company will leverage its existing market reach and expertise in the hospital setting to create a more efficient, single-source home healthcare delivery and distribution model to support patients as their care transitions from the hospital into the home.
Daniel J. Starck, who has served as CEO for Apria since 2015, has joined Owens & Minor and will lead the new Patient Direct 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,” says Starck, in a release.
“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 says. “We welcome our newest teammates from Apria and look forward to continued success in our mission of empowering our customers to advance healthcare.”
The acquisition was consummated for total consideration in cash of approximately $1.6 billion and funded with a combination of debt and cash on hand.
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.