By Lisa Kerner
Charlotte, N.C., June 19 - Apria Healthcare Group Inc. agreed to be acquired by an affiliate of Blackstone Group for $21 cash per share in a transaction valued at approximately $1.6 billion.
The per-share offer price is a 33% premium over Apria's closing share price on June 18 and a 29% premium over the company's average closing share price for the 30 trading days ended June 18, an Apria news release said.
Apria's board of directors unanimously approved the merger agreement, which includes a go-shop period that ends July 24.
The transaction, slated to close in the second half of 2008, will be financed through a combination of equity contributed by Blackstone and debt financing committed by affiliates of Bank of America, Wachovia and Barclays Capital.
Apria will become a private company, wholly owned by Blackstone and its affiliates. The home health-care company will maintain its corporate headquarters in Lake Forest, Calif., while Apria's infusion division will remain in Denver, according to the release.
Goldman, Sachs & Co. advised Apria's board of directors, while Blackstone was advised by Banc of America Securities LLC, Wachovia Capital Markets, LLC and Barclays Capital.
Apria also announced it entered into a $280 million credit facility with affiliates of Bank of America, Wachovia and Barclays Capital, proceeds of which will be used to fund potential repurchases of Apria's 3.375% convertible senior notes due 2033 and to pay certain related tax liabilities.
| Acquirer: | Blackstone Group
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| Target: | Apria Healthcare Group Inc.
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| Announcement date: | June 19
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| Transaction total: | $1.6 billion
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| Price per share: | $21.00
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| Expected closing: | Second half of 2008
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| Stock price for target: | NYSE: AHG: $15.82 on June 18
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