Owens & Minor Sells Medical Distribution to Cardinal Health for $1B

TL;DR

O&M selling Med Distro to Cardinal for $1B, focusing on Med Solutions.

AI Summary

Owens & Minor, Inc. announced on September 16, 2024, that it has entered into a definitive agreement to sell its Medical Distribution business to Cardinal Health, Inc. for approximately $1.0 billion. This strategic divestiture is expected to close in the first half of 2025, subject to customary closing conditions.

Why It Matters

This significant divestiture allows Owens & Minor to focus on its higher-growth Medical Solutions segment and improve its financial flexibility. For Cardinal Health, it represents a substantial expansion of its distribution network.

Risk Assessment

Risk Level: medium — The transaction is subject to closing conditions and regulatory approvals, and there's a risk of integration challenges for Cardinal Health.

Key Numbers

• $1.0B — Sale Price (Divestiture of Medical Distribution business to Cardinal Health.)

Key Players & Entities

• Owens & Minor, Inc. (company) — Seller
• Cardinal Health, Inc. (company) — Buyer
• $1.0 billion (dollar_amount) — Sale price
• September 16, 2024 (date) — Announcement date
• first half of 2025 (date) — Expected closing period

FAQ

Key Financial Figures

• $2 — nge on which registered Common Stock, $2 par value per share OMI New York St
• $171,322,000 — tstanding aggregate principal amount of $171,322,000, pursuant to the terms of the indenture

Filing Documents

• d880664d8k.htm (8-K) — 23KB
• 0001193125-24-219607.txt ( ) — 138KB
• omi-20240916.xsd (EX-101.SCH) — 3KB
• omi-20240916_lab.xml (EX-101.LAB) — 17KB
• omi-20240916_pre.xml (EX-101.PRE) — 11KB
• d880664d8k_htm.xml (XML) — 3KB

From the Filing

8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): September 16, 2024 OWENS & MINOR, INC. (Exact name of Registrant as specified in charter) Virginia 001-09810 54-1701843 (State or other jurisdiction of incorporation) (Commission file number) (I.R.S. employer identification no.) 9120 Lockwood Blvd , Mechanicsville , Virginia 23116 (Address of principal executive offices) (Zip code) Post Office Box 27626, Richmond, Virginia 23261-7626 (Mailing address of principal executive offices) (Zip code) Registrant's telephone number, including area code ( 804 ) 723-7000 Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $2 par value per share OMI New York Stock Exchange Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (240.12b-2 of this chapter). Emerging Growth Company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Item8.01 Other Events. On September 16, 2024 (the "Redemption Date"), Owens & Minor, Inc. redeemed all of its outstanding 4.375% Senior Notes due 2024 (the "Notes"), which had an outstanding aggregate principal amount of $171,322,000, pursuant to the terms of the indenture governing the Notes, at a redemption price equal to 100% of the principal amount of the Notes, plus accrued and unpaid interest to, but excluding, the Redemption Date. As of the Redemption Date, the Notes were no longer deemed outstanding and interest on the Notes ceased to accrue. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. OWENS & MINOR, INC. Date: September 16, 2024 By: /s/ Heath H. Galloway Name: Heath H. Galloway Title: Executive Vice President, General Counsel & Corporate Secretary

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View this 8-K filing on SEC EDGAR