UnitedHealth Scoops Up Home-Health Firm LHC Group In $5.4B Deal

UnitedHealth Group Inc UNH has agreed to buy LHC Group Inc LHCG for about $5.4 billion in cash.
The acquisition by UnitedHealth's Optum health-services arm will add one of the country's largest home-health firms to a portfolio that already includes doctor groups, clinics, and surgery centers as some home-based services.
Under the deal, UnitedHealth would pay about $170 a share for LHC, which had approximately $2.2 billion in FY21 and includes hospice, long-term-care hospitals, other home-based services, and home health.
The offer value represents a premium of 8.1% from Monday's closing stock price of $157.23.
Including debt, the deal is valued at roughly $6 billion, UnitedHealth said. The company expects the acquisition to close in the second half of 2022.
LHC Group's 30,000 employees provide more than 12 million annual in-home patient-focused interventions. The LHC Group leadership team will continue forward as part of Optum Health.
Co-founders Keith and Ginger Myers will personally invest $10 million in UnitedHealth stock following the close of the combination.
The acquisition is expected to be neutral to UnitedHealth's outlook for adjusted net earnings per share in 2022, modestly accretive in 2023, and advancing strongly in subsequent years.
Price Action: UNH shares are down 0.18% at $512.28, and LHCG stock is up 5.72% at $166.22 during the market session on the last check Tuesday.