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news.Home medical equipment provider Apria Healthcare has agreed to acquire all the outstanding shares of Colorado-based home infusion company Coram for a cash price of $350 million.
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The acquisition will expand Apria’s service offering by creating a nationwide home infusion provider. The transaction also enables Apria to immediately enter the large and rapidly-growing specialty pharmaceutical market, while expanding existing managed care relationships associated with its respiratory/home medical equipment business.
The transaction is conditioned upon obtaining customary, governmental and regulatory approvals and other standard closing conditions.
Apria expects Coram to generate approximately $500 million of revenue in 2008. Apria estimates that the transaction will be dilutive to net after-tax earnings by approximately $3.5 to $5.5 million in 2008, and accretive to 2009 net after-tax earnings by approximately $5 to $6 million.
Lawrence Higby, CEO of Apria Healthcare, said: “This is a transformative event for Apria Healthcare. The transaction supports our strategy of diversifying our service offering by adding and expanding complementary product lines that fit well with our core competencies.”