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RICHMOND - Owens & Minor, Inc. (NYSE:OMI) announced Tuesday it has reached a definitive agreement to sell its Products & Healthcare Services (P&HS) segment to Platinum Equity for $375 million in cash, transforming the company into a pure-play home-based care business.
The transaction, expected to close near the end of 2025, includes Owens & Minor retaining a 5% equity stake in the P&HS business and a preferred equity return that could yield additional proceeds in the event of a future divestiture. The company will also preserve tax attributes exceeding $150 million, including federal net operating loss carryforwards.
"This transaction will allow the Company to focus on a simpler business model and allow for a more appropriate valuation as a leader in this segment," said Edward A. Pesicka, President and CEO of Owens & Minor, in the press release statement.
The divestiture represents a strategic shift for Owens & Minor, which has been moving toward expanding its position in the home-based care market. After the sale, the company will concentrate resources on its Patient Direct business.
Jacob Kotzubei, Co-President of Platinum Equity, stated, "Owens & Minor has played a vital role in supporting healthcare providers and patients across the country, and we are proud to invest in the future of P&HS."
The deal remains subject to customary closing conditions, including regulatory approvals under the Hart-Scott-Rodino Act.
Citi and Wells Fargo are serving as financial advisors to Owens & Minor, with Kirkland & Ellis as legal advisor. Bank of America and Fifth Third are acting as financial advisors to Platinum Equity.
Owens & Minor plans to release its third-quarter 2025 financial results on October 31, 2025.
In other recent news, Owens & Minor Inc. reported its Q2 2025 earnings, revealing earnings per share of $0.26, which did not meet the forecasted $0.29, representing a 10.34% shortfall. The company’s revenue for the quarter was $682 million, a 3.3% increase compared to the same period last year. Despite the revenue growth, the earnings miss led to investor disappointment. In another development, UBS adjusted its price target for Owens & Minor to $7 from $13, maintaining a Buy rating. This adjustment followed the company’s underwhelming second-quarter results and outlook, with UBS citing concerns over near-term dis-synergies from the Patient & Healthcare Services sale and the loss of Kaiser impacting 2026 EBIT. UBS anticipates that the sale could generate approximately $700 million, potentially aiding Owens & Minor in reducing its debt. Additionally, Snehashish Sarkar, the executive vice president and chief information officer of Owens & Minor, announced his resignation, effective September 26, 2025, to pursue a new opportunity. Sarkar has been with the company since October 2022 and was noted for building a global team during his tenure.
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