Blackstone buys health care group for $1.6B

Apria Healthcare Group Inc. announced today a $1.6 billion merger agreement with Sky Acquisition LLC, an affiliate of The Blackstone Group, in a deal that would transform the home health care services company into a private company wholly owned by Blackstone and its affiliates. Members of Lake Forest, Calif.-based Apria’s board unanimously approved the merger with New York-based Blackstone, which is expected to close in the second half of the year. Apria’s transaction with the private-equity firm, which is still subject to shareholder approval, would give its shareholders $21 in cash for each outstanding common share they hold. The deal will be financed through a combination of equity contributed by Blackstone and debt financing from affiliates of Charlotte, N.C.-based Bank of America Corp. and Wachovia Corp., as well as Barclays Capital, the New York-based investment banking arm of London-based Barclays PLC. “We are excited about teaming up with Blackstone to continue pursuing our goals of growth while continually improving operating efficiencies and enhancing our service for all of the patients and customers we serve,” Lawrence M. Higby, chief executive and a director of Apria Healthcare, said in a statement.