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Transforms Owens & Minor into a Pure Play Market Leader in the Home-Based Care Market
5% Retained Equity Stake Provides Ability to Realize Future Value Creation Under Platinum Equity
Preserves Tax Attributes in Excess of $150 Million
Owens & Minor, Inc. (NYSE:OMI)today announced that it has entered into a definitive agreement for the sale of the Company's Products & Healthcare Services (P&HS) segment to Platinum Equity. Over the last several years, Owens & Minor has been strategically moving towards expanding its leadership position in the very attractive home-based care space. This transaction will allow the Company to focus on a simpler business model and allow for a more appropriate valuation as a leader in this segment.
Transaction Details
Under the terms of the definitive agreement, Owens & Minor will receive a cash payment of $375 million at closing of the sale, subject to customary adjustments for working capital, net debt and transaction expenses. Also, Owens & Minor will retain a five (5) percent interest in the Products & Healthcare Services business as well as a preferred equity return that, in the event of a future divestiture of the business, could result in Owens & Minor receiving a portion of divestiture proceeds. Owens & Minor will also retain certain specified tax assets, including federal net operating loss carryforwards and certain other tax attributes, which exceeds $150 million.
The transaction is subject to customary closing conditions, including the Hart Scott Rodino Act and other regulatory approvals. The transaction is expected to close near the end of the year.
Posted In: OMI
