The Blackstone Group has completed its acquisition of the Apria Healthcare Group for a total of some USD1.7bn, inclusive of retired debt and associated transaction costs.
The Blackstone Group has completed its acquisition of the Apria Healthcare Group for a total of some USD1.7bn, inclusive of retired debt and associated transaction costs. Apria stockholders will receive USD21 in cash for each share of common stock that they own, less withholding taxes.
After almost 11 years with Apria, Lawrence M. Higby is retiring as chief executive but will continue as vice-chairman and advisor to ensure a smooth transition to his successor, for whom the search is underway. In the interim Dr Norman Payson, an Apria board member for the past two years and a former managed care executive, will act as executive chairman and interim chief executive.
‘Larry Higby and his team have done an outstanding job in growing Apria from USD940m in revenues in 1999, as a provider of primarily home respiratory and medical equipment services, to USD2.1bn as a diversified provider of a broad range of homecare services,’ Payson says. ‘He and his team have grown Apria into the leading US home healthcare company.’
Says Higby: ‘Our alliance with Blackstone will enable Apria to continue to expand and enhance the homecare services we provide to millions of patients each year. Blackstone brings an experienced group of long-term health care investors who are committed to reinforcing our company’s mission of being our patients’ and customers’ first choice for homecare services in the US.’
Blackstone senior managing director Neil Simpkins adds: ‘We look forward to working with Apria team members to build on the company’s track record of delivering high-quality medical care. We are fortunate to have Norm Payson, who brings to a leadership role a great deal of healthcare industry expertise as both a physician and executive.’
Goldman Sachs was financial advisor to Apria’s board of directors, while Gibson, Dunn & Crutcher acted as legal advisor to Apria and Munger Tolles & Olson to the independent members of its board. Banc of America Securities, Wachovia Capital Markets and Barclays Capital were financial advisors and Simpson Thacher & Bartlett was legal advisor to Blackstone.
Lake Forest, California-based Apria provides home respiratory therapy, infusion therapy and medical equipment to patients in all 50 US states. The firm posted more than USD1.6bn in annual net revenues for its most recent financial year (USD2.1bn if Apria’s December 2007 acquisition of Coram were included for the full year).
The Blackstone Group’s businesses include the management of corporate private equity funds, real estate funds, hedge funds, funds of funds, debt funds, collateralised loan obligation vehicles and closed-ended mutual funds, as well as financial advisory services including mergers and acquisitions advisory, restructuring and reorganisation advisory and fund placement.
