Dynamic Healthcare M&A Database

Acquiring Party	The Blackstone Group, a major publicly-traded private equity firm.
Transferring Party	Apria Healthcare Group AHG, a major home health provider.
Sector	Medical Services
Date	June 20, 2008
Analysis Apria runs about 550 respiratory and infusion therapy locations throughout the US and services more 2m patients a year. Apria, which bough rival Corum, for $350m in 07, has been struggling due to competitive bidding and expected Medicare cutbacks. Some 70% of Apria’s revenues come from managed care providers. In this challenging environment, operating as a private company offers more flexibility. Blackstone acquires the largest home health provider in a market availing of favorable demongraphic trends, with possible distribution channels for related products and services. Deal value -- $1.6b, on sales of $1.78b and EBITDA of $298m. Relatively low valuation with possible strong upside, albeit with reimbursement risk.
The Walden Group is a leading healthcare investment banking firm specializing in mergers, acquisitions and strategic transactions. It also invests its own funds and, together with its expert operational partners, provides value-added services to help special companies reach critical milestones. This information is copyright © 2004-2007 The Walden Group, Inc. This information is provided as a service to the public but remains the intellectual property of The Walden Group, Inc and may not be reproduced in any manner without the written permission of The Walden Group, Inc. The information contained in the transactions table was derived from publicly available and other sources. Transaction analysis and other information are based, in part, upon public comments, Walden Group research and judgments, and reporting and research of others. The information is not intended to be relied upon as pronouncements by the transaction participants or for any other reason.

Dynamic Healthcare M&A Database - 2Q08