- UnitedHealth Group Inc (NYSE:UNH) has agreed to buy LHC Group Inc (NASDAQ: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.
