Owens & Minor (NYSE:OMI) announced today that it has active discussions underway regarding the sale of its Products & Healthcare Services segment.
The move comes as part of a strategy aimed to optimize the business unit, leveraging the company’s Patient Direct platform. Patient Direct delivers home-based care for patients with chronic conditions.
Edward Pesicka, president and CEO of Owens & Minor, said the company continues to see momentum within the business. He noted a broadened product portfolio, streamlined and efficient manufacturing footprint and enhanced distribution capabilities.
“These capabilities, combined with positive demographic trends and expanding home treatment options, leaves us very bullish on the future of this business,” Pesicka said in a news release.
“As a logical next step, we have been actively engaged in robust discussions regarding the potential sale of our Products & Healthcare Services segment.”
The company also repaid $647 million in debt over the last two years, helping to provide the fincancial flexibility to acquire Rotech. Owens & Minor announced a $1.4 billion deal to buy the home medical equipment company last July. The company expects that acquisition to drive long-term shareholder value, Pesicka says.
“In the meantime, we remain focused on delivering a strong 2025 and are confident in our ability to achieve double-digit adjusted EBITDA growth while improving cash flow,” Pesicka said.
For the fourth quarter, Owens & Minor beat Wall Street expectations on both sales and adjusted EPS.
The company reported losses of $296 million. That equals $3.84 per share on sales of $2.696 billion for the three months ended Dec. 31, 2024.
Owens & Minor’s bottom line slid into the red on a sales uptick of 1.5%.
Adjusted to exclude one-time items, earnings per share came in at 55¢. That landed 3¢ ahead of expectations on Wall Street. Sales earned a beat, too, topping estimates of $2.68 billion.
The company expects 2025 adjusted EPS between $1.60 and $1.85 and sales between $10.85 billion and $11.15 billion.
