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RICHMOND, Va. - Owens & Minor, Inc. (NYSE: OMI), a global healthcare solutions company, announced today the termination of its planned acquisition of Rotech Healthcare Holdings Inc. The company has paid a termination fee of $80 million to Rotech Healthcare and will redeem $1 billion of notes issued in April 2025 as part of unwinding the deal. This adds to the company’s existing financial obligations, with InvestingPro data showing total debt of $2.27 billion as of the latest quarter.
The acquisition, which had been in the works for several months, faced regulatory challenges. According to Edward A. Pesicka, President & Chief Executive Officer of Owens & Minor, efforts to obtain regulatory clearance were not viable in terms of time, expense, and the potential opportunities lost during the prolonged process.
Despite the setback, Owens & Minor remains focused on its strategy to grow its Patient Direct business, which caters to the home-based care market. The company aims to strengthen its balance sheet through improved cash flow generation and deleveraging. Additionally, Owens & Minor continues to explore the potential sale of its Products and Healthcare Services business while working to enhance its performance.
The home-based care market, where Owens & Minor has a strong presence, is expanding, and the company is committed to serving patients with chronic conditions. Pesicka expressed gratitude to the teams at Owens & Minor and Rotech for their cooperation and efforts over the past months and emphasized the company’s outlook for profitable growth in the future.
Owens & Minor, Inc., with over 20,000 employees worldwide, has been a key player in the healthcare industry for more than a century, providing products and services from the hospital to the home through its affiliated brands.
This news is based on a press release statement from Owens & Minor, Inc.
In other recent news, Owens & Minor Inc. reported its first-quarter 2025 financial results, surpassing earnings expectations with an earnings per share (EPS) of $0.23, which exceeded the forecast of $0.20. The company achieved revenues of $2.63 billion, slightly below the anticipated $2.66 billion, but still reflecting a 1% year-over-year increase. Owens & Minor’s strong performance in the Patient Direct segment, which grew by 6%, contributed to these results. Additionally, the company reaffirmed its full-year guidance, expecting improved results in the latter half of 2025. The planned acquisition of RoTEK is anticipated to close in the first half of 2025, potentially enhancing future growth prospects.
In other developments, Owens & Minor held its 2025 Annual Meeting of Shareholders, where several key proposals were approved, including the election of nine directors for a one-year term and the ratification of KPMG LLP as the company’s independent registered public accounting firm. The shareholders also approved the compensation of the company’s named executive officers. These approvals indicate shareholder confidence in the company’s leadership and financial practices. The company is also actively engaged in discussions regarding the potential sale of its Products and Healthcare Services segment.
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