Apria Healthcare Group Inc., which has done its part to consolidate the fragmented home healthcare industry in the past few years, said it has hired an investment bank as a first step toward possibly being acquired.
Lake Forest-based Apria said it tapped Morgan Stanley to contact possible suitors for the company.
A story in Tuesday’s New York Post said Apria was looking at the possiblity of being acquired and had received a number of overtures.
“Apria has received expressions of interest from a variety of persons concerning the possibility of an acquisition of Apria’s outstanding equity,” the company said in a statement.
But “there is no assurance that this process will lead to an acquisition transaction,” Apria said.
Apria counts a market value of $1.75 billion. Its shares closed up 16.6% Tuesday.
The company provides breathing treatment and other services to patients in their homes.
Medicare accounts for about 31% of Apria’s revenue, up from 27% in 2002. The company gets the bulk of its $1.4 billion in annual sales from managed care health plan operators and private insurance companies.
Apria has been a busy buyer itself. The company spent about $28 million to buy seven companies during the first quarter.
About 60% of the home healthcare market is made up of mom-and-pop companies.
The company formed in 1995 through the combination of Costa Mesa-based Abbey Healthcare Group Inc. and Fountain Valley-based Homedco Group Inc.
