Owens & Minor Sells P&HS Segment for $375m, Focusing on Home-Based Care Operations

Owens & Minor has agreed to sell its Products & Healthcare Services (P&HS) segment to Platinum Equity for $375m. The company will retain a 5% equity stake in the business and preserve over $150m in tax attributes. The transaction enables Owens & Minor to focus on home-based care operations, aligning with its strategic shift over recent years. The deal is expected to close by the end of the year, subject to regulatory review and customary closing conditions.

Richmond, Va. — Owens & Minor, a prominent healthcare services provider, has agreed to sell its Products & Healthcare Services (P&HS) segment to Platinum Equity for $375 million in cash. The transaction includes a 5% equity stake in the business for Owens & Minor, which also retains over $150 million in tax assets. The sale aligns with Owens & Minor's strategic shift towards home-based care, as it focuses on its Patient Direct business.

The strategic divestiture supports Owens & Minor’s transformation into a pure-play home-based care platform, centered around its Patient Direct business Owens & Minor sells Products & Healthcare Services segment to Platinum Equity for $375M^[1]. The company plans to use the net proceeds from the sale to reduce its outstanding debt, which currently stands at $1.9 billion. This move is part of the company's broader initiative to strengthen its balance sheet and accelerate growth in its Patient Direct segment Owens & Minor to divest P&HS unit for $375M plus equity stake^[2].

Platinum Equity, a global investment firm with a strong track record in healthcare and supply chain operations, expressed confidence in the future of the P&HS business. The firm plans to grow the segment as a standalone company and support its operational transformation Owens & Minor to sell business unit to Platinum Equity for $375 million, will focus on home-based care market^[3].

The transaction is subject to customary closing conditions, including regulatory approvals under the Hart-Scott-Rodino Antitrust Improvements Act. Owens & Minor expects the sale to close by the end of the year Owens & Minor sells Products & Healthcare Services segment to Platinum Equity for $375M^[1].