Platinum Equity announced that it has signed a definitive agreement to acquire the Products & Healthcare Services (P&HS) segment of Owens & Minor (NYSE: OMI), a leading U.S. medical supply distribution platform. As part of the transaction, Owens & Minor will retain a 5% equity stake in the divested business, which will operate as a standalone company following the acquisition.
Headquartered in Richmond, Virginia, P&HS serves as a vertically integrated medical supply distribution platform, providing hospitals, health systems, and other healthcare providers across the United States with essential medical and surgical products. The business plays a critical role in supporting the nation’s acute care market, offering supply chain reliability and efficiency in an increasingly demanding healthcare environment.
The acquisition underscores Platinum Equity’s focus on carve-out transactions and operational transformation. With approximately $50 billion in assets under management and more than 500 acquisitions completed since its founding in 1995, Platinum Equity has deep experience in acquiring divisions from large corporations and helping them thrive as independent entities. Recent carve-outs have included businesses from major industrial and manufacturing firms such as Ball Corporation, Caterpillar, Emerson Electric, Ingersoll Rand, and Kohler.
Platinum Equity plans to utilize its extensive M&A and operational expertise to strengthen P&HS’s growth trajectory and enhance its service capabilities. The firm views the acquisition as a timely opportunity given the favorable healthcare market dynamics—particularly the aging U.S. population and rising demand for medical supplies and services. These macro trends are expected to provide sustained growth potential for P&HS as an independent company.
Owens & Minor, which has a long history of supporting healthcare providers and patients nationwide, emphasized that the transaction will allow it to focus on its core operations while ensuring that P&HS continues to serve customers effectively under Platinum’s ownership. The divestiture also provides Owens & Minor with liquidity and a continued interest in the success of the spun-out business.
The deal, expected to close by the end of the year pending regulatory approvals and customary closing conditions, has involved a comprehensive advisory team.
Advisors: Bank of America and Fifth Third served as financial advisors to Platinum Equity, with Gibson, Dunn & Crutcher providing legal counsel, Willkie Farr & Gallagher handling debt financing, and Latham & Watkins serving as special regulatory counsel. On Owens & Minor’s side, Citi and Wells Fargo acted as financial advisors, while Kirkland & Ellis served as legal counsel.
KEY QUOTES:
“Owens & Minor has played a vital role in supporting healthcare providers and patients across the country, and we are proud to invest in the future of P&HS. We are pleased to provide Owens & Minor a divestiture solution for P&HS and are grateful for the continued partnership. With the support of Platinum’s operational capabilities, we are excited about further enhancing P&HS’s global capabilities to deliver essential products and services when and where its customers need.”
Jacob Kotzubei, Co-President of Platinum Equity
“Platinum Equity is the perfect home for the Products & Healthcare Services business. Platinum’s commitment to building on the customer-centric legacy of the business and to strategically invest to stay at the forefront of the evolving healthcare market will serve all stakeholders very well long into the future.”
Edward A. Pesicka, President & Chief Executive Officer of Owens & Minor
“We believe the aging U.S. population and increasing demand for healthcare services will continue to drive sustainable long-term demand for medical supplies distribution. We are committed to growing the P&HS business and have strong conviction in its potential as a standalone company. We look forward to working with the team to support its continued growth and operational transformation.”
Matthew Louie, Managing Director of Platinum Equity
