Gentiva to buy Odyssey for $1 bn

Gentiva Health Services said it will acquire Odyssey HealthCare in an all cash deal worth $1 bn.

Gentiva Health Services said it will acquire Odyssey HealthCare in an all cash deal worth USD 1 billion that will create the largest health care provider in the US.

The company is offering USD 27 per share to Odyssey shareholders,it said in a statement.

Gentiva,expects that the merger would create the largest US healthcare provider,with more than USD 1.8 billion annual revenue and an average daily census of about 14,000 patients in 30 states.

“The combination of the two companies clearly positions us as a leader in both home health and hospice care in the United States,” said Gentiva Chief Executive Officer Tony Strange.

Gentiva expects the deal would add to its adjusted earnings within the first 12 months after closing the deal.

The transaction is expected to close in the third quarter of the year.

The company said it would raise about USD 1.1 billion in new debt financing,to fund the purchase price and to refinance the existing debt. Besides it has also secured a financing commitment for the transaction,from a syndicate of leading financial institutions,including BofA Merrill Lynch,Barclays Bank PLC and General Electric Capital Corp.