Coliseum capital increases stake in Owens & Minor with $4.3 million purchase

Coliseum Capital, LLC, a significant stakeholder in Owens & Minor Inc . (NYSE:OMI), has increased its investment in the company by purchasing additional shares. According to a recent SEC filing, Coliseum Capital acquired a total of 528,356 shares over three transactions, amounting to approximately $4.3 million. These purchases were made at prices ranging from $7.84 to $8.53 per share.

The transactions were executed on April 3, April 4, and April 7, 2025, with the shares being acquired indirectly through Coliseum Capital Partners (WA:CPAP), L.P., and a separate account investment advisory client. Following these transactions, Coliseum Capital now holds a significant stake in Owens & Minor, with a total ownership of 11,152,955 shares.

Owens & Minor, headquartered in Glen Allen, Virginia, is a prominent distributor of medical and surgical supplies. The increased investment by Coliseum Capital reflects continued confidence in the company's prospects.

In other recent news, Owens & Minor Inc. reported its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of $0.55, slightly exceeding the forecasted $0.54, though revenue fell short at $2.69 billion against a projected $2.73 billion. The company also announced a strategic move to finance its acquisition of Rotech Healthcare Holdings Inc. by securing $1 billion in senior secured notes due in 2030. This acquisition is part of Owens & Minor's broader strategy to expand its service offerings in the healthcare sector. Additionally, S&P Global Ratings revised Owens & Minor's outlook from stable to negative, citing higher-than-expected leverage due to the Rotech acquisition, though the company’s existing ratings were affirmed.

The financial agreement for the Rotech acquisition involves senior secured notes held in escrow, with plans to use the proceeds to finance the acquisition and related transactions. Owens & Minor has also been actively engaged in discussions regarding the potential sale of its Products and Healthcare Services (NASDAQ:HCSG) segment. Meanwhile, the company has continued to focus on debt reduction, having decreased its debt by $244 million in 2024. Analyst feedback from S&P Global Ratings suggests that if Owens & Minor sells its PHS business, leverage thresholds could be adjusted, aligning with industry peers. These developments reflect Owens & Minor's ongoing efforts to manage its financial health while pursuing strategic growth initiatives.

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