“Owens & Minor is laser-focused on our mission to empower our customers to advance healthcare. While Movianto has been an important part of the Owens & Minor family, the intended transaction would advance Owens & Minor’s mission by providing greater ability to focus on and invest in our differentiated products, services and U.S. distribution businesses,” CEO Ed Pesicka said in a news release.
The company purchased Movianto in 2012 for $157 million and, at the time of purchase, it represented 5.5% of consolidated revenue.
“The quality of operations, the solid reputation and the values of Movianto are perfectly consistent with EHDH,” CEO of EHDH Stéphane Baudry said. “This potential combination of EHDH and Movianto comes at a key moment in our development and in response to market demand for a single contact to handle all logistics and transport services at European level.”
The transaction is subject to discussions with employee representative bodies and certain conditions, according to an SEC filing. Owens & Minor expects to close the transaction in the first half of 2020. Proceeds from the sale are intended to be used toward debt reduction.
Shares in OMI were down 0.69% to $5.75 apiece in early morning trading.