Owens & Minor looks to move quickly on sale
By HME News Staff
Updated 11:05 AM CST, Wed March 5, 2025
RICHMOND, Va. – Owens & Minor has spent the past few years reinvesting in its higher-growth, higher-margin Patient Direct business and now the company says it will move quickly to sell its Patient & Healthcare Services business.
The company has been engaged in “robust discussions” regarding a potential sale after receiving interest from “multiple inbound” sources, CEO Edward Pesicka told investors on a call to discuss the company’s fourth quarter and full-year 2024 earnings results.
Owens & Minor made the announcement, he says, because the company seeks to be transparent about the potential sale.
“We’re moving through this now and this way, so we can have frank conversations with our customers, our supplier communities and our internal teammates to be able to move this forward and reach a decision quickly versus trying to slow-walk this,” he said.
Owens & Minor has retained Citi to serve as its advisor.
Proceeds from any transaction will go toward paying down debt, particularly once its $1.36 billion acquisition of Rotech, in the works since July 2024, gains regulatory approval.
“To the extent possible, we have been using the past few months to further understand the synergy opportunities and create the ability to expedite synergies post close,” said Pesicka. “Based on what we already know and the work we have done to date, we now believe that our previously discussed cost synergy projections of $50 million in year three is conservative in both terms of value and time.”
Other highlights from the call:
Patient Direct saw mid-single digit growth for both the fourth quarter and the full year, with the business posting revenues of $695 million for the fourth quarter and $2.68 billion for the full year 2024.
“I think, (if) you look at our mid-single digit growth for the year, as well as the quarter, it’s relatively strong, we believe, compared to the market and some strong pockets of where we’re seeing some of the investments we’ve made are starting to pay off,” said Pesicka.
In January, Byram Healthcare, part of Owens & Minor, also launched ByramConnect, a personalized digital health program for people with Type 1 and Type 2 diabetes powered by the Welldoc app.
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