Owens & Minor and Rotech Healthcare Agree to End Previously Planned Acquisition
A medical professional in a hospital wearing protective apparel supplied by the healthcare solutions company.
As part of the agreement, Owens & Minor has paid $80 million to Rotech Healthcare. Additionally, the company will redeem $1 billion in notes issued in April 2025, which include a mandatory redemption clause, and will terminate the loan commitments from lenders that were intended to finance the acquisition.
Edward A. Pesicka, President & Chief Executive Officer of Owens & Minor, Inc. (NYSE:OMI), made the following statement:
'For many months, our teammates, along with the Rotech team, have worked tirelessly in cooperation with the Federal Trade Commission to close this transaction, and while we believe there would have been ample benefits to patients, payors, and providers by adding Rotech to our Patient Direct business, the path to obtain regulatory clearance for this merger proved unviable in terms of time, expense, and opportunity.'
He further stated that the company remains confident in its strategy and will continue focusing on expanding its Patient Direct business while prioritizing balance sheet strength through improved cash flow and debt reduction. He emphasized that the home-based care market is growing and dynamic, and Owens & Minor is well-positioned to support patients with chronic conditions. Pesicka also mentioned ongoing discussions with several interested parties regarding the potential sale of their Products and Healthcare Services business. Meanwhile, the company will continue efforts to strengthen this business and capitalize on its growth opportunities.
Owens & Minor, Inc. (NYSE:OMI) is a Fortune 500 global healthcare solutions provider, delivering essential products and services that support care from hospitals to patients' homes.
While we acknowledge the potential of OMI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
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