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Coliseum Capital, LLC, a significant shareholder in Owens & Minor Inc. (NYSE:OMI), has increased its stake in the company with a series of stock purchases totaling approximately $3.07 million. The transactions, which took place over several days, involved the acquisition of 410,000 shares at prices ranging from $7.19 to $7.96 per share.
The purchases were conducted in three separate transactions: 105,000 shares on April 8, 225,000 shares on April 9, and 80,000 shares on April 10. Following these transactions, Coliseum Capital now holds a total of 11,562,955 shares in the company. These purchases come as the stock has experienced a significant decline, with InvestingPro data showing a 73% drop over the past year.
Coliseum Capital, along with its affiliates, is a prominent investment firm known for its strategic investments in healthcare and other sectors. The recent acquisition reflects their continued confidence in Owens & Minor, a company specializing in the distribution of medical and surgical supplies.
The shares are held directly by Coliseum Capital Partners (WA:CPAP), L.P., and a separate account investment advisory client of Coliseum Capital Management, LLC. Notably, Christopher S. Shackelton and Adam Gray, who are managers and have ownership interests in Coliseum Capital, have also been involved in these transactions, further indicating their vested interest in Owens & Minor's future performance.
In other recent news, Owens & Minor Inc. reported fourth-quarter 2024 earnings per share (EPS) of $0.55, surpassing analyst expectations of $0.54. However, the company's revenue fell short, posting $2.69 billion against a forecast of $2.73 billion. Additionally, Owens & Minor secured $1 billion in senior secured notes at a 10.000% rate, intended to finance the acquisition of Rotech Healthcare Holdings Inc. This acquisition financing includes a first-priority lien on nearly all of the company's assets, with the funds currently held in escrow.
The acquisition of Rotech is expected to increase Owens & Minor's leverage above the 4.5x downgrade threshold, prompting S&P Global Ratings to revise the company's outlook from stable to negative. The company's strategic expansion through this acquisition aims to enhance its offerings in the medical supply industry. Meanwhile, the company's debt was reduced by $244 million in 2024, reflecting its ongoing efforts to manage financial obligations.
Owens & Minor's recent announcement of a $100 million share repurchase program indicates a focus on shareholder value amidst market fluctuations. The company also provided 2025 revenue guidance between $10.85 billion and $11.15 billion, with adjusted EPS projected to range from $1.60 to $1.85. These developments highlight Owens & Minor's strategic initiatives and financial maneuvers as it navigates its growth trajectory.
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