Owens & Minor Inc. sent Apria Inc. shares skyward with the announcement of its acquisition of the at-home health care company for $1.45 billion in cash this morning. Apria’s stock (NASDAQ:APR) closed Friday at $29.72, opened today at $37.16 and has continued to climb incrementally since then. O&M’s stock (NYSE:OMI) ended the week at $45.09, ebbed sharply to $40.19 on the news before recovering to $45.33 at noon.

The deal gives Apria shareholders $37.50 in cash per share of common stock, a 26% increase on Apria share price Friday. Richmond-based O&M’s assumption of debt and cash pushes the transaction to a total value of $1.6 billion. Both companies’ boards have approved the transaction, which is expected to close in the first half of 2022.

O&M distributes its own surgical and personal protective equipment (PPE) to more than 4,000 customers in the health care sector. Its last acquisition was in 2017, when the company bought White Plains, N.Y.-based Byram Healthcare, a home health supply company, for $380 million. Apria provides a range of products and services for home respiratory therapy, obstructive sleep apnea and negative-pressure wound therapy.

“I’m very excited about the acquisition of Apria, which will strengthen our total company value proposition. The combination of two complementary businesses in Byram Healthcare and Apria will enable us to better serve the entire patient journey – through the hospital and into the home – ultimately furthering our mission of empowering our customers to advance health care,” said O&M President and CEO Edward Pesicka. “In addition, this transaction diversifies our total company revenue stream by expanding our presence in the higher-growth home health care market.”

During an investor call this morning, Pesicka noted that the acquisition met the strategic objectives of long-term profitable growth and product and services expansion outlined at O&M’s most recent investor day presentation.

“This acquisition will expand our patient direct capabilities to support additional chronic and acute conditions, as well as strengthen our total company value proposition, enabling us to better serve the entire patient journey through the hospital and into the home, ultimately furthering our mission of empowering our customers to advance health care,” he added. “This acquisition will combine two strong patient direct businesses, our Byram business and Apria. We believe the combination of these businesses will create a leading platform that allows for expansion in the fast-growing part of the health care market, the home.”