What has happened
Apria Stock : The shares of Apria, a home health equipment manufacturer Apria ( APR) were skyrocketing 26.2 percent higher at 12:05 p.m. ET the previous Monday. The dramatic increase came following the announcement that Owens & Minor ( OMI 0.80%) announced plans to buy Apria for about $1.45 billion.
So , what’s next?
Owens & Minor offered $37.50 in cash per share to Apria. It’s a premium of 26% to the value of Apria’s shares as of the close of trading on Friday and a 24% advantage over Apria’s 30 day volume-weighted average price. The price is also just a bit below the all-time high of Apria, a Apria healthcare stock..
The deal appears to be an excellent move to Apria shareholders. But is it a good decision to Owens & Minor? It’s likely.
Owens & Minor bought medical supply distributor Byram Healthcare in 2017. The acquisition of Apria is likely to be a great combination with the business of Byram. Owens & Minor will be better placed to take on the $50 billion healthcare home market.
From a financial standpoint Apria’s acquisition from a financial perspective Apria will add to Owens & Minor’s revenues; adjusted earnings before tax, interest, depreciation as well as amortization ( EBITDA) as well as profits per share. The acquisition also diversifies Owens & Minor’s revenue streams.
What do we do now?
The deal has been unanimously approved by directors’ boards from the two companies: Owens & Minor and Apria. Two more hurdles are still to be cleared to be cleared — approval from Apria’s shareholders, and an approval from the regulators. But, these hurdles shouldn’t be too difficult to cross. The two companies anticipate that the deal will be completed in the first quarter of this year.
Should you put your money into Apria Healthcare Group Inc. in the present moment?
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