Moneyline: Two big deals, one week

Owens & Minor buys Byram; NDC buys Dedicated Distribution
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Friday, May 5, 2017

RICHMOND, Va. – Owens & Minor, a global healthcare services company providing supply chain services to healthcare providers and manufacturers, has agreed to pay about $380 million for Byram Healthcare, it announced May 2.

The White Plains N.Y.-based Byram is a leading supplier of home medical supplies, including ostomy, wound care, urology, diabetes and incontinence supplies.

“Expanding across the continuum of care is a strategic imperative for us,” said P. Cody Phipps, president and CEO of Owens & Minor in a press release. “With the addition of Byram to the Owens & Minor family, we can quickly advance our strategic agenda with providers and manufacturers by expanding our reach beyond the hospital setting all the way to the patient’s home.”

Of particular attraction for Owens & Minor: Byram’s portfolio of more than 600 payer contracts covering 200 million lives.

The deal is the latest in the popular home medical supplies space. In 2016, Coloplast acquired Comfort Medical for $160 million; and Domtar acquired Home Delivery Incontinence Supplies for $45 million. In 2015, C.R. Bard acquired Liberator Medical for $181 million. C.R. Bard was just acquired in April by Becton Dickinson and Company for $24 billion.

Owens & Minor is expected to close the transaction in the third quarter of 2017.

NDC, Dedicated Distribution combine to become ‘partner of choice’

NASHVILLE, Tenn. – NDC, a healthcare supply chain company, has acquired Dedicated Distribution, the companies announced May 4.

NDC will use Dedicated Distribution, a wholesale supplier of home medical equipment and supplies, as a platform for its Home Care division. NDC currently serves several markets, including the acute care physician, extended care, dental and home care markets.

“Our combination with Dedicated Distribution is a natural fit,” said Mark Seitz, president and CEO of NDC, in a press release. “Their reputation for excellent service and never competing with its customers mirrors ours.”

Doug Harper, former president of Invacare Supply Group, will serve as president of NDC’s Home Care division, while Steve Cole will stay on as executive vice president of Dedicated Distribution, a division of NDC Home Care.

“Steve Cole and I have more than 60 years of unwavering commitment to distribution,” said Harper. “We will leverage that experience, the skill of the Dedicated Distribution team and NDC’s extensive resources to be the partner of choice for the home healthcare provider.”

Terms of the deal were not disclosed.