Lake Forest-based Apria Healthcare Group Inc. said Monday that it was spending $350 million in cash for Coram Inc., a provider of home infusion and specialty drug services.
Chief Executive Lawrence Higby called the deal “a transformative event” and said it’s part of Apria’s strategy to add and expand services that fit well with its core business.
Apria gets most of its $1.5 billion in yearly sales from providing breathing treatments to patients in their homes.
Coram provides intravenous services such as tube feeding and antibiotic treatments for transplant and congestive heart failure patients, among others.
Higby said the deal makes Apria “significantly less reliant on government reimbursement policies” because government payers like Medicare would represent a smaller percentage of its business once Coram’s in the fold.
Apria, the nation’s largest home healthcare provider, said in a release it expects the deal could close in early November.
Coram is based in Denver and has 2,100 workers nationwide, 70 home infusion branches and 50 company owned and operated ambulatory infusion suites.
Apria said it expects Coram to generate some $500 million in revenue next year.
John Arlotta, Coram’s chief executive, and his management team are slated to continue leading Coram’s operations after the deal and coordinate the integration of the company’s infusion business.
Historically, Apria’s been known for buying smaller regional home health players and integrating them into its network, a process Higby calls “Apriatization.”
Apria itself was created by the 1995 combination of Abbey Healthcare Group Inc. and Homedco Group Inc.
