Owens & Minor sells Products & Healthcare Services segment to Platinum Equity for $375M

RICHMOND, Va. — Owens & Minor has signed a definitive agreement to sell its Products & Healthcare Services (P&HS) segment to Platinum Equity for $375 million in cash. The strategic divestiture supports Owens & Minor’s transformation into a pure-play home-based care platform, centered around its Patient Direct business. 

Strategic shift toward home-based care 

As part of the transaction, Owens & Minor will retain a 5% ownership stake in the P&HS segment and a preferred equity interest. This structure allows the company to potentially benefit from future proceeds if the segment is sold again. Owens & Minor will also retain more than $150 million in tax assets, including federal net operating loss carryforwards and other tax attributes. 

“This agreement marks a critical milestone in our strategic transformation,” said Edward A. Pesicka, president & CEO of Owens & Minor. “We’re laser-focused on becoming a leading home-based care business, delivering consistent revenue and profit growth while enhancing value for our Patient Direct stakeholders.” 

Use of proceeds to reduce debt 

Company officials have previously said Owens & Minor plans to use 100% of the net proceeds from the sale to reduce its outstanding debt, which currently stands at $1.9 billion. That represents a $126 million increase since the end of 2024, partially driven by a $100 million payment to Rotech Healthcare following a failed merger. 

During its second-quarter earnings call, the company emphasized its commitment to strengthening its balance sheet and accelerating growth in its Patient Direct segment, which includes Apria Healthcare and Byram Healthcare. Apria and Byram recently announced a national provider agreement with Optum Health, further expanding its reach in the home-based care market. 

Platinum Equity’s investment strategy 

Platinum Equity, a global investment firm with a strong track record in health care and supply chain operations, expressed confidence in the future of the P&HS business. 

“We are committed to growing the P&HS business and have strong conviction in its potential as a standalone company,” said Matthew Louie, managing director at Platinum Equity. “We look forward to supporting its continued growth and operational transformation.” 

Platinum Equity has more than 30 years of experience acquiring and operating businesses spun off from large corporate entities. In 2024, the firm acquired Sunrise Medical from Nordic Capital. 

Transaction timeline and regulatory approval 

The sale is subject to customary closing conditions, including regulatory approvals under the Hart-Scott-Rodino Antitrust Improvements Act. The transaction is expected to close by the end of the year.