Apria’s Top Shareholder Nets $100 Million in Sale

Apria Healthcare Group Inc.’s biggest shareholder has sold the majority of its stake in the Costa Mesa home-care company, pocketing about $100 million in the process.

Relational Investors LLC, an activist institutional investor that took charge of the nation’s largest home-health-care company about 2 1/2 years ago, sold 8.5 million shares--a 16% stake--at $23.83 each. The sale brought in nearly $202.6 million for shares that the firm acquired for an average of $12, or a total of $102 million.

The investment firm, credited with Apria’s turnaround, announced plans for the sale in early June, when shares were trading at $26. But Apria’s stock dropped last month after federal prosecutors said the company overbilled the government by as much as $103 million. Apria disputes the amount allegedly owed.

Apria Chairman Ralph V. Whitworth and board member David H. Batchelder, both Relational principals, said they will retain their positions at Apria, which has posted profit increases for five consecutive quarters.

Relational retains 2.4 million shares, or 4.5% of Apria, although underwriters have the option to buy 1.3 million more shares.

Credit Suisse First Boston, Banc of America Securities LLC, JP Morgan and UBS Warburg headed the underwriting syndicate offering the shares to the public.

Apria shares gained $1.85 to $25.68 Friday on the New York Stock Exchange.