Latest news with #Owens&Minor
Yahoo
14-07-2025
- Business
- Yahoo
Why Owens & Minor (OMI) Shares Are Trading Lower Today
Shares of medical supply and logistics company Owens & Minor (NYSE:OMI) fell 3.2% in the morning session after continued pressure from the previous week's announcement of potential new U.S. tariffs on Canada. The negative sentiment follows news from late last week that the U.S. administration was considering a significant 35% tariff on Canadian imports, sparking fears of a broader trade dispute. The healthcare sector is seen as particularly vulnerable to such tensions because of its deeply integrated supply chains with Canada for various medical devices and products. For a medical supply and logistics company like Owens & Minor, the prospect of new tariffs raises concerns about increased operational costs and potential disruptions. This uncertainty is weighing on investor sentiment, as a trade war could pressure profit margins for companies reliant on cross-border trade for their supplies and distribution networks. The stock's move reflects broader market anxiety about the economic impact of protectionist trade policies. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Owens & Minor? Access our full analysis report here, it's free. Owens & Minor's shares are extremely volatile and have had 44 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 3 days ago when the stock dropped 3% on the news that the U.S. administration announced a sharp escalation in trade tensions by threatening new tariffs on Canada. The wider market sentiment turned negative after the White House announced plans to impose a 35% tariff on Canadian imports, sparking renewed fears of a trade war. This news prompted a sell-off across major U.S. indexes, including the S&P 500 and the Dow Jones Industrial Average, as investors grew concerned about the potential economic impact of escalating protectionist policies. The healthcare sector is especially vulnerable to such tensions due to its deeply integrated supply chains with Canada for pharmaceuticals and medical devices, meaning increased costs and potential disruptions. Additionally, ongoing U.S. policy headwinds aimed at lowering drug prices and specific corporate challenges, like those faced by UnitedHealth Group, further compounded the sector's decline. As a result, the Health Care SPDR ETF (XLV) fell 1.0%, underperforming even as major indices pared some losses. Owens & Minor is down 38.8% since the beginning of the year, and at $7.86 per share, it is trading 52.3% below its 52-week high of $16.48 from July 2024. Investors who bought $1,000 worth of Owens & Minor's shares 5 years ago would now be looking at an investment worth $1,026. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
Business Wire
10-06-2025
- Business
- Business Wire
Owens & Minor and Rotech Healthcare Mutually Agree to Terminate Previously Announced Acquisition
RICHMOND, Va.--(BUSINESS WIRE)--Owens & Minor, Inc. (NYSE: OMI) today announced it has mutually agreed with Rotech Healthcare Holdings Inc. to terminate the previously announced acquisition. Under the terms of the merger agreement, Owens & Minor has paid $80 million to Rotech Healthcare. Owens & Minor will also redeem the $1 billion of notes issued in April 2025, which include a special mandatory redemption provision in accordance with their terms, and terminate the incremental term loan commitments and senior unsecured bridge loan commitments provided by our lenders which would have been utilized to consummate the acquisition. '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,' said Edward A. Pesicka, President & Chief Executive Officer of Owens & Minor. 'We are confident in our strategy and will continue to focus our efforts on growing our Patient Direct business while remaining committed to strengthening our balance sheet through the use of improved cash flow generation for deleveraging. The home-based care market is a dynamic, growing market, and we are extremely well positioned to help those with chronic conditions get the care and service they need and deserve. Also, we continue to work with a number of interested parties around the potential sale of our Products and Healthcare Services business, and, in the meantime, we will continue to actively work to strengthen that business and tap into its significant upside'. 'I want to thank our teammates, partners and everyone at Rotech for their effort and cooperation over the last several months, and we look forward to a bright future with many years of profitable growth,' Pesicka concluded. About Owens & Minor Owens & Minor, Inc. (NYSE: OMI) is a Fortune 500 global healthcare solutions company providing essential products and services that support care from the hospital to the home. For over 100 years, Owens & Minor and its affiliated brands, Apria®, Byram® and HALYARD*, have helped to make each day better for the patients, providers, and communities we serve. Powered by more than 20,000 teammates worldwide, Owens & Minor delivers comfort and confidence behind the scenes so healthcare stays at the forefront. Owens & Minor exists because every day, everywhere, Life Takes Care™. For more information about Owens & Minor and our affiliated brands, visit or follow us on LinkedIn and Instagram. * Registered Trademark or Trademark of O&M Halyard or its affiliates. This press release shall not constitute an offer to buy the notes issued in April 2025, which will be conducted pursuant to a special mandatory redemption in accordance with the terms of the notes.
Yahoo
09-06-2025
- Business
- Yahoo
3 Healthcare Stocks in Hot Water
Personal health and wellness is one of the many secular tailwinds for healthcare companies. Despite the rosy long-term prospects, short-term headwinds such as COVID inventory destocking have harmed the industry's returns - over the past six months, healthcare stocks have collectively shed 12.3%. This drawdown was noticeably worse than the S&P 500's 1.9% loss. Investors should tread carefully as the influx of venture capital has also ushered in a new wave of competition. Keeping that in mind, here are three healthcare stocks we're swiping left on. Market Cap: $12.17 billion With a network spanning 39 states and three countries, Universal Health Services (NYSE:UHS) operates acute care hospitals and behavioral health facilities across the United States, United Kingdom, and Puerto Rico. Why Are We Hesitant About UHS? Poor comparable store sales performance over the past two years indicates it's having trouble bringing new patients into its facilities Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 1.2 percentage points Free cash flow margin shrank by 3.1 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive Universal Health Services's stock price of $188.81 implies a valuation ratio of 9.5x forward P/E. Dive into our free research report to see why there are better opportunities than UHS. Market Cap: $512.5 million With roots dating back to 1882 and operations spanning approximately 80 countries, Owens & Minor (NYSE:OMI) is a healthcare solutions company that manufactures medical supplies, distributes products to healthcare providers, and delivers medical equipment directly to patients. Why Does OMI Give Us Pause? Scale is a double-edged sword because it limits the company's growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 3.2% for the last two years Underwhelming 3.8% return on capital reflects management's difficulties in finding profitable growth opportunities, and its falling returns suggest its earlier profit pools are drying up Diminishing returns on capital from an already low starting point show that neither management's prior nor current bets are going as planned Owens & Minor is trading at $6.67 per share, or 3.7x forward P/E. If you're considering OMI for your portfolio, see our FREE research report to learn more. Market Cap: $132.8 billion With roots dating back to 1849 when two German immigrants opened a fine chemicals business in Brooklyn, Pfizer (NYSE:PFE) is a global biopharmaceutical company that discovers, develops, manufactures, and sells medicines and vaccines for a wide range of diseases and conditions. Why Are We Cautious About PFE? Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth Free cash flow margin shrank by 8.9 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive Diminishing returns on capital suggest its earlier profit pools are drying up At $23.40 per share, Pfizer trades at 7.8x forward P/E. To fully understand why you should be careful with PFE, check out our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
Yahoo
06-06-2025
- Business
- Yahoo
Owens & Minor spikes $1.36B Rotech buyout over regulatory barriers
This story was originally published on MedTech Dive. To receive daily news and insights, subscribe to our free daily MedTech Dive newsletter. Owens & Minor said Thursday it has terminated the planned $1.36 billion acquisition of home medical equipment company Rotech Healthcare Holdings. The companies mutually agreed to terminate the deal after getting regulatory clearance 'proved unviable in terms of time, expense and opportunity,' Owens & Minor CEO Edward Pesicka said in a statement. Owens & Minor originally aimed to close the takeover by the end of last year. However, the deal was held up by the Federal Trade Commission's review. Owens & Minor and Rotech announced the acquisition in July 2024. Having set the goal of almost doubling patient direct sales by 2028, Owens & Minor moved to boost its position in areas including respiratory and sleep apnea products by acquiring Rotech. Privately owned Rotech reported $750 million in net revenue in 2023. The closing date was delayed by an FTC investigation. Owens & Minor and Rotech entered into a timing agreement with the FTC that gave the federal agency until June 10 to complete its review of the deal. Days from the deadline, Owens & Minor and Rotech terminated the takeover agreement. Pesicka said the merger would have provided 'ample benefits to patients, payors, and providers.' Yet, the 'path to obtain regulatory clearance' proved unviable, the CEO said, driving the companies to drop the merger. Owens & Minor paid Rotech $80 million in conjunction with the termination. The company previously said the deal included a $70 million termination fee. The $80 million termination payment brings Owens & Minor's spending on the deal above $100 million. Acquisition-related costs totaled $22 million in 2024 and $16 million in the first quarter of 2025. The termination closed off an avenue to Owens & Minor's 2028 patient direct sales target but investors reacted positively to the news. Shares in Owens & Minor jumped 14% to close at $7.61 on Thursday. Rotech's revenue fell almost 4% to $725.8 million last year. Asked about the results on an earnings call with analysts last month, Owens & Minor CFO Jonathan Leon said the declines 'were largely anticipated and largely resulted from a lot of COVID-era benefit that the industry got to realize that fell off in early 2024.' Recommended Reading Owens & Minor inks $1.36B takeover of Rotech
Yahoo
06-06-2025
- Business
- Yahoo
BofA sees termination of Owens–Rotech deal as surprising but potentially positive
-- Bank of America said Owens & Minor's decision to terminate its planned acquisition of Rotech Healthcare was unexpected but may ultimately prove beneficial, allowing the company to refocus on its core operations and potential asset sales. The companies mutually agreed to cancel the deal after determining that regulatory clearance was unlikely. Owens & Minor (NYSE:OMI) cited antitrust concerns raised by the U.S. Federal Trade Commission in certain regional markets. The transaction was previously expected to close in the first half of 2025. OMI will incur about $100 million in costs related to the termination, including an $80 million payment to Rotech. It also plans to redeem $1 billion in notes issued in April and cancel associated loan commitments intended to fund the acquisition. 'This news is surprising to us given the competitive landscape in the durable medical equipment space,' BofA analysts wrote, noting they did not view the merger as anti-competitive. However, they said the move could benefit Owens & Minor by eliminating a complex integration and allowing management to focus on operations and cost control. Rotech had been expected to add 15 cents to earnings per share by the second year, but BofA noted the deal was highly dependent on synergies and Rotech's recent growth was weak, with revenue down 4% year-over-year in 2024. BofA reiterated its 'Underperform' rating on the stock but raised its price objective to $7.50 from $7.00, citing increased clarity on strategy and a lower debt burden. The firm expects Owens & Minor to continue pursuing smaller acquisitions in its Patient Direct business and to push ahead with a potential sale of its Products and Healthcare Services (NASDAQ:HCSG) unit. Related articles BofA sees termination of Owens–Rotech deal as surprising but potentially positive U.S. Treasury, Commerce secretaries and Trade Representative to meet Chinese reps Neo Performance Materials stock surges on buyback plan
