Latest news with #RotechHealthcare
Yahoo
3 days ago
- Business
- Yahoo
Owens & Minor price target raised to $7.50 from $7 at BofA
BofA raised the firm's price target on Owens & Minor to $7.50 from $7 and keeps an Underperform rating on the shares after the company announced that it and Rotech Healthcare have mutually agreed to terminate their pending merger. The news was 'surprising' given the competitive landscape in the durable medical equipment space, says the firm, which did not view the combination of Owens & Minor and Rotech as anti-competitive. However, given the significant amount of time being allocated to this deal, the firm views the decision not to move forward favorably as it will allow the company to focus on its core operations, the analyst added. While the firm views the scrapped deal news positively, it thinks that a broader turnaround will require a 'delicate balance' of reducing costs, improving working capital, and de-levering while investing for growth, BofA says. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on OMI: Disclaimer & DisclosureReport an Issue Owens & Minor price target raised to $10 from $9 at Baird Owens & Minor's Strategic Setbacks and Financial Challenges Justify Sell Rating Owens & Minor rises 16.8% Trump-Xi call focuses on trade, PVH reports Q2 beat: Morning Buzz Owens & Minor rises 17.1%
Yahoo
3 days 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.
