OPCH - Option Care Health Amedisys merging in all-stock deal

2023-05-03 17:08:34 ET

Option Care Health ( NASDAQ: OPCH ) and Amedisys ( NASDAQ: AMED ) are merging in a transaction valuing the latter at ~$3.6B.

Option Care ( OPCH ) provides home and alternate site infusion services. Amedisys ( AMED ) provides home health, hospice and high-acuity care.

Terms call for Amedisys ( AMED ) stockholders to receive 3.0213 shares of Option Care Health ( OPCH ) common stock for each share of Amedisys ( AMED ) common stock they own.

This is equal to $97.38 per Amedisys ( AMED ) share based on Option Care Health's ( OPCH ) closing stock price on May 2, It's also a 26% premium based on Amedisys' ( AMED ) May 2 closing price.

At closing, Option Care Health ( OPCH ) stockholders will own ~64.5% of the combined company, with Amedisys ( AMED ) stockholders holding the rest.

The merger, which is subject to approval of shareholders of both companies, is expected to close in the second half of the year.

On a combined basis, the two companies generated generated $6.2B in revenue and $622M in adjusted EBITDA in 2022.

In after-hours trading Wednesday, Option Care Health ( OPCH ) is down ~17% , while Amedisys ( AMED ) is up ~4% .

More on Option Care Health and Amedisys

Option Care Health: A Good Bet

Option Care Health: Profitability, Returns On Capital, Attract Buy Rating

Amedisys: We Are Still Neutral, Reiterate Hold

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