Lake Forest-based Apria Healthcare Group Inc. said Tuesday it’s no longer seeking a buyer and instead plans to focus on reversing a slump in profits.
The home healthcare provider in June hired Morgan Stanley to contact possible buyers for the company.
The process proved drawn out and was complicated by a lawsuit, debt, falling profits and Medicare issues.
“After extensive discussions with a number of potential financial and strategic investors, Apria’s board of directors has determined that the interests of shareholders will be best served by terminating the previously announced process to explore potential opportunities for a sale of the company,” Apria said in a statement.
Apria reported a third-quarter profit of $19.3 million, off 35% from a year earlier with cuts in Medicare funding that took effect earlier this year.
Revenue was $368 million, flat with a year earlier.
For the year, Apria said it sees revenue growth of about 3% and 6% next year. Profits could grow 20% next year, the company said, helped by a $250 million stock buyback announced Tuesday.
Apria said it recently signed a three-year contract to provide services to members of Cigna Corp. and renewed a five-year contract with Kaiser Permanente.
The company said it acquired five small businesses for $4.1 million in the third quarter, bringing its total for the year to 19 buys worth $100 million.