Healthcare Giants Join Hands: Option Care Health Acquires Amedisys in a $3.6 Billion Stock Swap

Option Care Health Inc OPCH and Amedisys Inc AMED have agreed to combine in an all-stock, valuing Amedisys at approximately $3.6 billion.

Each Amedisys share will be exchanged for 3.0213 shares of Option Care Health, equivalent to $97.38 per Amedisys share.

Option Care Health stockholders will own approximately 64.5% of the combined company, and Amedisys stockholders 35.5%.

Together, Option Care Health and Amedisys will have a national clinical workforce of over 16,500 professionals and 674 care centers.

Based on recently reported 2022 financial results, the combined company generated revenues of approximately $6.2 billion and adjusted EBITDA of approximately $622 million on a combined basis.

The companies expect to generate annual run-rate synergies of approximately $75 million by year three following close. It generated over $400 million in cash flow from operations for 2022.

John Rademacher and Mike Shapiro will continue to lead the combined company as CEO and CFO, respectively. 

The transaction is expected to close in the second half of 2023.

Option Care Health reported Q1 sales of $1.02 billion, up 10.9% Y/Y beating the consensus of $998.9 million. It reported an EPS of $0.21 compared to $0.17 a year ago, beating the consensus of $0.18.

Amedisys reported Q1 adjusted EPS of $1.00, beating the consensus of $0.88 with sales of $556.39 million, missing the consensus of $558.98 million.

Price Action: AMED shares are down 5.63% at $74.20 on the last check Thursday.