Article Title: “Owens & Minor to divest P&HS unit for $375M plus equity stake”
Publication Date: October 8, 2025
Owens & Minor Inc. (O&M), a healthcare logistics company, has announced its decision to divest its Products & Healthcare Services (P&HS) unit to private equity firm Platinum Equity. As reported on October 8, 2025, the strategic move is aimed at intensifying O&M’s dominance in the home-based care sector.
Under the terms of the agreement, Platinum Equity will acquire P&HS for a cash consideration of $375 million. Additionally, O&M will retain a 5% equity share in the business post-divestiture. This equity retention signals O&M’s continued interest in the sector and a potential buffer against any adverse market dynamics.
The divestiture of P&HS represents a recalibration of O&M’s business portfolio, with a more precise focus on home-based care solutions. Such sector-specific concentration is becoming increasingly common among healthcare firms, spurred by dynamic market circumstances and evolving patient preferences. Particularly in the wake of the ongoing pandemic, home-based care has experienced a surge in demand, potentially making this segment a lucrative avenue for O&M.
For investors, this strategy infers a risk-concentration in one market vertical. However, diversification through the retained equity in P&HS does seem to mitigate this risk to some extent. Platinum Equity’s investment, meanwhile, is a testament to the potential inherent in P&HS.
In conclusion, this divestiture not only provides O&M with the cash influx to maximize its potential in the home-based care market but also keeps it anchored in the P&HS space with retained equity. It’s a strategic maneuver that can have significant implications in the reshaping of the company’s market identity and financial trajectory.
As always, Industry Informant will continue to provide accurate and timely updates on strategic decisions shaping the biotech industry landscape.
