Latest news with #Owens&Minor
Yahoo
9 hours ago
- Business
- Yahoo
Owens & Minor and Rotech Healthcare Agree to End Previously Planned Acquisition
Owens & Minor, Inc. (NYSE:OMI) announced that it has mutually agreed with Rotech Healthcare Holdings Inc. to cancel their 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. READ NEXT: and Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Journals
13 hours ago
- Business
- Business Journals
Owens & Minor cancels $1.36B Rotech acquisition
Glen Allen-based Owens & Minor, a Fortune 500 health care logistics firm, has canceled its $1.36 billion acquisition of Florida-based Rotech Healthcare Holdings, a home health care company. The two firms mutually agreed to terminate the deal on Tuesday, according to a U.S. Securities and Exchange Commission filing. Owens & Minor is paying an $80 million termination fee to end the deal.
Yahoo
3 days ago
- Business
- Yahoo
Owens & Minor partners with WVU Health System to open medical distribution center
MORGANTOWN, (WBOY) — A grand opening was held on Monday to introduce the community to Owens & Minor's new state-of the-art medical distribution center, in partnership with WVU Health System and the state of West Virginia. According to President and CEO Ed Pesicka, the facility is going to support the WVU Health System in Morgantown, along with the entire state and the surrounding region. Pesicka told 12 News that by the end of the year, the center plans to hire about 100 new teammates. 'So it's bringing back additional jobs to the area,' he added. 'And [we're] really excited to have this long-term partnership that we've put together with WVU Health.' WVU Health System President and Chief Executive Officer Albert Wright said they began working with Owens & Minor a few years ago, when in search of a new partner for medical supplies and distribution. According to Wright, it was very important for WVU Health System to have a distribution center that's headquartered in West Virginia to serve them and surrounding partners while also bringing jobs and economic development to the region. 'It is just a beautiful facility,' said Wright. 'Employing a lot of folks and kind of building towards our mission of improving the health trajectory of the state of West Virginia and the surrounding areas that we serve.' According to Wright, Owens & Minor is a Fortune 500 company that operates on a national scale. 'For them to you know, see a partner in us — that they were willing to build a facility here in West Virginia to make sure we always have the medical supplies we need and that they're able to easily travel the rugged terrain we have in West Virginia to make sure our network of hospitals and care points around the state are being taken care of, I think that's a pretty big commitment on their part,' he added. WVU student discovers psychedelic fungus that could be used to treat addiction, depression Pesicka stated that the partnership between Owens & Minor, WVU Health System and the state of West Virginia has been in place for the past several years. He added that a distribution center of this size (350,000 sq. feet) with this amount of technology takes a little bit of time, but that they were excited to finally be opening things up on Monday. 'It's around making sure we have products close to the point of care,' said Pesicka. 'Whether it's a clinician or a surgeon, that they can have the product quickly of what they need and always have what they need, and it's gonna help healthcare in the region.' According to Pesicka, Owens & Minor's purpose is 'Life Takes Care' and the company takes that to heart. 'We wanna make sure that we have the products, the ability to service our customer, which is really the clinician and the patient,' he added. 'And that's really what our focus is on this.' According to Wright, the availability of medical supplies was something that many people took for granted prior to the COVID-19 pandemic, which was significantly challenged during that time. 'One of our guiding principles coming out of COVID was to make sure we had a supplier and partner with reserves that were focused on West Virginia, and I think this facility and this partnership solves that,' he added. Wright told 12 News that the vast majority of WVU Health System's medical supplies will come from Owens & Minor through this new distribution center. Some of the items that will be produced include custom surgical packs, gowns, and personal protective equipment (PPE). Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
16-05-2025
- Business
- Yahoo
Closure of Grimes medical supply facility will affect dozens of workers
GRIMES, Iowa — A medical supply facility in Grimes will be closing later this year, leaving dozens of workers without a job. American Contract Services, a company that provides package and sterilization manufacturing services for healthcare facilities, announced it would be closing its Grimes facility. According to the Iowa WARN Notification List, 62 employees will be laid off on July 31 when the facility closes. WHO 13 News reached out to Owens & Minor, the company that owns American Contract Services, for comment, but has not heard back. Closure of Grimes medical supply facility will affect dozens of workers Dizzying work going on at Des Moines parks! Five minutes with Ben Page 15 veterans receive marked graves, ceremonies a century after their service Wrong-way driver arrested after allegedly leading DMPD on chase downtown MercyOne Des Moines cutting ties with long-time anesthesia partner Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
08-05-2025
- Business
- Yahoo
Owens & Minor (NYSE:OMI) Reports Sales Below Analyst Estimates In Q1 Earnings
Medical supply and logistics company Owens & Minor (NYSE:OMI) missed Wall Street's revenue expectations in Q1 CY2025, with sales flat year on year at $2.63 billion. On the other hand, the company's outlook for the full year was close to analysts' estimates with revenue guided to $11 billion at the midpoint. Its non-GAAP profit of $0.23 per share was 14.5% above analysts' consensus estimates. Is now the time to buy Owens & Minor? Find out in our full research report. Revenue: $2.63 billion vs analyst estimates of $2.67 billion (flat year on year, 1.6% miss) Adjusted EPS: $0.23 vs analyst estimates of $0.20 (14.5% beat) Adjusted EBITDA: $121.9 million vs analyst estimates of $116.7 million (4.6% margin, 4.4% beat) The company reconfirmed its revenue guidance for the full year of $11 billion at the midpoint Management reiterated its full-year Adjusted EPS guidance of $1.73 at the midpoint EBITDA guidance for the full year is $575 million at the midpoint, in line with analyst expectations Operating Margin: 0%, in line with the same quarter last year Free Cash Flow was -$90.76 million compared to -$102.4 million in the same quarter last year Market Capitalization: $599.5 million 'Across the business we continued to see strong execution and progress towards our near and long-term strategies. Patient Direct delivered mid-single digit top-line growth with strong performance in nearly all therapy categories led by Diabetes and Sleep Supplies. The top-line growth combined with strong operational execution delivered mid-teen expansion in EBITDA for the segment. Our Products & Healthcare Services segment saw top-line growth in our Medical Distribution division, as well as good progress on driving profit improvement initiatives. We remain actively engaged in the sale process of our Products & Healthcare Services segment,' said Edward A. Pesicka, President & Chief Executive Officer of Owens & Minor. 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. A company's long-term sales performance is one signal of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, Owens & Minor grew its sales at a tepid 3.6% compounded annual growth rate. This was below our standard for the healthcare sector and is a tough starting point for our analysis. Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Owens & Minor's annualized revenue growth of 3.2% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak. This quarter, Owens & Minor's $2.63 billion of revenue was flat year on year, falling short of Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 4.2% over the next 12 months, similar to its two-year rate. This projection is underwhelming and implies its newer products and services will not catalyze better top-line performance yet. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D. Owens & Minor was profitable over the last five years but held back by its large cost base. Its average operating margin of 1.2% was weak for a healthcare business. Looking at the trend in its profitability, Owens & Minor's operating margin decreased by 5.9 percentage points over the last five years. The company's two-year trajectory also shows it failed to get its profitability back to the peak as its margin fell by 2.9 percentage points. This performance was poor no matter how you look at it - it shows its expenses were rising and it couldn't pass those costs onto its customers. This quarter, Owens & Minor's breakeven margin was in line with the same quarter last year. This indicates the company's overall cost structure has been relatively stable. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Owens & Minor's EPS grew at an astounding 20.7% compounded annual growth rate over the last five years, higher than its 3.6% annualized revenue growth. However, we take this with a grain of salt because its operating margin didn't expand and it didn't repurchase its shares, meaning the delta came from reduced interest expenses or taxes. In Q1, Owens & Minor reported EPS at $0.23, up from $0.19 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Owens & Minor's full-year EPS of $1.56 to grow 14.9%. We enjoyed seeing Owens & Minor beat analysts' EPS expectations this quarter. We were also glad its full-year revenue guidance was in line with Wall Street's estimates. On the other hand, its revenue missed and its full-year EPS guidance fell slightly short of Wall Street's estimates. Overall, this was a mixed quarter with something for the bulls and something for the bears. The stock traded up 3.5% to $8 immediately after reporting. Is Owens & Minor an attractive investment opportunity right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
