Coram Purchased by Apria Healthcare
Apria Healthcare Group, Incorporated and Coram, Incorporated together announced today that the two companies will merge in a press release from Apria. Apria will spend $350 million in cash to acquire the outstanding Coram shares. Assuming that necessary regulatory approvals are achieved, the deal is expected to close during the middle of next month.
Coram is a privately held home infusion and specialty pharmaceutical service provider with clients across the country. Integration of their existing clients will position Apria as the largest national provider of home infusion services. Together, the two organizations annually serve more than 100,000 patients.
Following the acquisition, Apria will be able to leverage the existing specialty pharmaceutical market position of Coram, by entering the market in their own right. This segment of homecare is currently experiencing significant growth. Apria will additionally have the opportunity to broaden their relationships with businesses that provide both home medical and respiratory equipment.
Financial benefits of the deal for Apria include less reliance on reimbursements from the federal government, particularly Medicare. The addition of Coram will broaden the range of payors served by Apria and minimize the percentage of business associated with government payors.
October 16, 2007 Related topics: Trends, Mergers & Acquisitions, Corporate Financials