Gentiva Health plans nearly $1B Odyssey buy

ATLANTA (AP) - Home health services provider Gentiva Health Services plans to spend nearly $1 billion in cash to buy hospice care company Odyssey HealthCare.

Atlanta-based Gentiva says it will pay $27 per share for Odyssey stock in a move to create the largest U.S. provider of home health and hospice services. Based on Odyssey's 33.8 million shares outstanding at March 31, the deal is valued at $912.3 million.

The boards of both companies have approved the acquisition, which is expected to close in the third quarter, pending approval by regulators and Odyssey stockholders.

Gentiva expects to raise about $1.1 billion in new debt financing to fund the purchase and refinance existing debt.