Apria Rejects Transworld-Hyperion Acquisition Bid

Apria Healthcare Group Inc. said its board rejected an acquisition bid from former executive Timothy M. Aitken and a major New York investor.

Apria said the bid by Aitken’s Transworld HealthCare Inc. and its 70% owner, Hyperion Partners II, isn’t in the best interest of the home health care company’s shareholders.

In October, Transworld and Hyperion offered to buy Apria for $918 million, or $18 a share, in cash and stock.

Apria said it is continuing to explore alternatives and is negotiating a possible transaction.

In a separate announcement Thursday, Apria said it has agreed to provide respiratory therapy and home medical equipment for the physician-practice management company MedPartners Inc. in California. Financial terms weren’t disclosed. Apria said its agreement with MedPartners covers about 1.5 million California members.

Apria has provided infusion therapy services to MedPartners in California over the last year.