Recent Updates
Recently added Catalysts
ACH Neutral Sentiment Score: 55/100

Disclaimer Forward-Looking Statements This presentation contains certain "forward-looking" statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Some of these sta

Key Takeaway: Owens & Minor, Inc. has entered into an agreement to acquire Rotech Healthcare Holdings, Inc. This transaction aims to improve Owens & Minor's competitiveness in the home healthcare market. However, the process faces risks, including regulatory scrutiny and potential operational disruptions. Financially, the companies expect to perform better as a combined entity, although challenges in integration and achieving expected synergies remain.

Market Sentiment Analysis

POSITIVE FACTORS

  • The acquisition of Rotech Healthcare may enhance Owens & Minor's market position.
  • The transaction aims to create a more diversified company in the healthcare market.
  • It addresses high-growth areas such as home healthcare services.

CONCERNS & RISKS

  • There are risks associated with the potential disruption of business operations during the transaction.
  • The completion of the deal is contingent on regulatory review by the FTC.
  • There is uncertainty regarding the integration of both companies and achieving projected synergies.

Full Press Release Details

Lender Presentation March 20, 2025
Proprietary to Owens & Minor, Inc. 2025 Owens & Minor, Inc. Exhibit 99.1
Disclaimer Forward-Looking Statements
This presentation contains certain "forward-looking" statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Some of these statements can be identified by terms and phrases such as
"outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "predicts,"
"intends," "trends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. These statements include, but are not limited to, statements
regarding the proposed transaction with Rotech and opportunities related thereto, and Owens & Minor's expectations with respect to its financial performance and expectations of its business. Forward-looking statements involve known and unknown
risks and uncertainties that may cause our actual results in future periods to differ materially from those projected, targeted or contemplated in the forward-looking statements, including the occurrence of any event, change or other circumstances
that could give rise to the termination of the agreement relating to the proposed transaction; risks related to disruption of management's attention from Owens & Minor's ongoing business operations due to the proposed transaction; the effect of
the announcement of the proposed transaction on Owens & Minor's or Rotech's relationships with its customers, suppliers and other third parties, as well as operating results and their businesses generally; the risk that the proposed transaction
will not be consummated in a timely manner or at all; exceeding the expected costs of the transaction; the risk that problems may arise in successfully integrating the businesses of the companies, which may result in the combined company not
operating as effectively and efficiently as expected: and the risk that the combined company may be unable to achieve expected synergies or that it may take longer than expected to achieve those synergies. Investors should refer to Owens &
Minor's Annual Report on Form 10-K for the year ended December 31, 2024, including the sections captioned Cautionary Note Regarding Forward-Looking Statements and Risk Factors Summary' and Item 1A. Risk Factors,' and subsequent Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K filed with or furnished to the SEC, for a discussion of certain known risk factors that could cause the Company's actual results to differ materially from those projected, targeted or contemplated
in the forward-looking statements. Given these risks and uncertainties, Owens & Minor can give no assurance that any forward-looking statements will, in fact, transpire and, therefore, cautions investors not to place undue reliance on them.
Owens & Minor specifically disclaims any obligation to update or revise any forward-looking statements, as a result of new information, future developments or otherwise, except as required by law. Financial Information This presentation includes
certain combined financial information, which reflects the sum of the relevant financial information for the Company and Rotech without any other adjustments. This combination does not comply with U.S. GAAP or with the rules for pro forma
presentation. As a result, the combined financial information included in this presentation may differ from pro forma financial information prepared in accordance with U.S. GAAP and the rules and regulations of the SEC, and any such differences
could be material. The combined financial information provided in this presentation is not intended to represent or be indicative of the consolidated results of operations or financial position that would have been reported had the proposed
transactions been completed as of the dates presented, and should not be taken as representative of the future consolidated results of operations or financial position of the combined company following the Transactions. Numerical figures included in
this presentation have been subject to rounding adjustments. Accordingly, numerical figures shown as totals in various tables may not be arithmetic aggregations of the figures that precede them. As such, the corresponding percentage aggregations may
not sum to 100%. Certain financial measures included herein are not prepared in accordance with U.S. GAAP, including Adjusted EBITDA, and use of such terms varies from others in the same industry. Management uses these non-GAAP financial measures
internally to evaluate our performance, evaluate the balance sheet, engage in financial and operational planning and determine incentive compensation. Non-GAAP financial measures should not be considered as alternatives to measures derived in
accordance with U.S. GAAP. Non-GAAP financial measures have important limitations as analytical tools and you should not consider them in isolation or as substitutes for results as reported in accordance with U.S. GAAP. Projected or targeted U.S
GAAP financial measures and reconciliations of projected or targeted non-GAAP financial measures are not provided herein because such GAAP financial measures are not available on a forward-looking basis and such reconciliations could not be derived
without unreasonable effort. The appendix to this presentation includes a reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with U.S. GAAP. We present certain potential
cost savings as an adjustment to Adjusted EBITDA because we expect them to be a permitted add-back pursuant to agreements that govern or will govern our indebtedness and the indenture that will govern the notes. These potential cost savings are
based on assumptions and estimates that could prove to be incorrect, and accordingly should not be viewed as a projection of future performance. Potential Sale of Products & Healthcare Services Segment On February 28, 2025, the Company announced
that the Company was actively engaged in discussions regarding the potential sale of its Products & Healthcare Services segment. There is no set timetable for the potential sale and there can be no assurance that it will complete any such
transaction. Accordingly, this presentation does not give effect to any such transaction.
Today's Presenter Jon Leon EVP,
Chief Financial Officer Proprietary to Owens & Minor, Inc.
Executive Summary Proprietary to Owens
Introduction and Transaction Overview
On July 22nd, 2024 Owens & Minor, Inc. ("Owens & Minor", "OMI" or the "Company") entered into a definitive agreement (the "Transaction") to acquire Rotech Healthcare Holdings, Inc.
("Rotech" or the "Target") OMI is a global healthcare solutions company integrating product manufacturing and delivery, home health supply and perioperative services to support care through the hospital and into the home
Rotech offers products and services for in-home care across: Oxygen, Sleep Therapy, Ventilators, Wound Care, Diabetes, and Durable Medical Equipment ("DME") and other services The Transaction is intended to create a more competitive,
faster-growing and more diversified company Rotech expands OMI's presence in the high-growth home healthcare market by complementing and diversifying the Company's existing home-based care businesses, Apria and Byram Healthcare. Expected
net leverage at close of ~4.2x, and targeting deleveraging to below 3.0x Transaction financing2 consists of: $800 million Incremental Term Loan B $600 million other secured debt OMI and Rotech have entered into a timing agreement with the FTC under
which the FTC will have until June 10, 2025, to complete its review of the transaction Transaction Enterprise Value $1.36 billion FY 2024 OMI Financials Revenue of $10.7 billion Adj. EBITDA1 of $576 million EV Acquisition Multiple 6.3x implied LTM
Adj. EBITDA1,3 5.1x implied synergized4 LTM Adj. EBITDA1,3 Timeline Targeted closing in 1st half of 2025 2024 Combined Company Combined revenue of $11.4 billion Combined Adj. EBITDA1 of $774million FY 2024 Rotech Financials Revenue of $726 million
Adj. EBITDA1 of $198 million Transaction Overview Introduction 1 Adj. EBITDA is a Non-GAAP measure and includes compliance EBITDA addbacks. For a reconciliation of Net Income, the most directly comparable GAAP measure, to Adj. EBITDA, see slides 41
and 43; 2 OMI has obtained debt financing commitments to finance the Transaction and pay related fees and expenses in the form of a term loan B facility and other secured debt in an aggregate principal amount of up to $1.4 billion subject to
customary conditions; 3 LTM EBITDA as of 3/31/24; includes estimated cash tax benefits to Owens & Minor of at least $40 million; 4 Potential run-rate cost savings of $50 million. Proprietary to Owens & Minor, Inc.
Owens & Minor Overview 4,000+
Healthcare Providers Served 140+ Years of Dedicated Service ~400+ Facilities Worldwide ~85% of U.S. Population Accessible Through Payor Relationships ~3.2M Patients Served in the Home Owens & Minor, Inc. (NYSE: OMI) is a Fortune 500 global
healthcare solutions company providing essential products and services that support care from the hospital to the home. For over 100 years, Owens & Minor and its affiliated brands, Apria , Byram , and HALYARD*, have helped to make each
day better for the patients, providers, and communities we serve. Powered by more than 20,000 teammates worldwide, Owens & Minor delivers comfort and confidence behind the scenes so healthcare stays at the forefront. Owens & Minor
exists because every day, everywhere, Life Takes Care . Proprietary to Owens & Minor, Inc.
Compelling Strategic Rationale and
Value Creation Opportunity Strategic Rationale Value Creation Targets Accelerate long-term revenue growth Accretive to operating and EBITDA margins Improve free cash flow generation Accretive to Adjusted EPS Strengthens Patient Direct by expanding
product offerings across complementary portfolios and provides access to the DME market, including hospital beds, wheelchairs, and mobility aids(1) Supports combined customer base allowing Owens & Minor to better serve providers and payors
across an integrated national network Enables Owens & Minor to more comprehensively serve patients through the combined suite of product offerings and improved service for patients with chronic conditions in large and fragmented markets Provides
significant potential run-rate cost savings of $50 million by the end of year three, with further upside potential, as well as prospect for additional revenue synergies in both the near and long term Proprietary to Owens & Minor, Inc. 1 We are
considering a potential sale of our Products & Healthcare Services segment. See "Disclaimers" on slide 5.
Alignment with Our Patient Direct
Vision Framing the 2028 Patient Direct Vision Patient Direct Strong brand recognition with a national footprint and local presence Proven model is expected to continue to drive organic growth Expansive opportunities to serve patients across core
disease categories and numerous opportunities to enter adjacencies Focus investments to drive organic growth Revenue of $5 billion or more Revenue CAGR of 8%+ Adjusted Operating Income Target of $400 million+ Rotech Advances the Long-Term Targets
Proprietary to Owens & Minor, Inc.
Rotech Further Diversifies our Patient
Direct Business Proprietary to Owens & Minor, Inc. Rotech enhances Patient Direct's diversified product portfolio Rotech shifts Patient Direct's payor mix slightly away from commercial payors toward government Combined Patient Direct
Payor Mix(1) Combined Patient Direct Business Mix(1) Key Payor Mix Takeaway Key Business Mix Takeaway As of FY24. Includes Other Medical Supplies, Other Equipment and Services, DME / Other and Capitated Arrangements. Includes Patient Pay. (3)
Owens & Minor Overview
Proprietary to Owens & Minor, Inc.
Patient Direct - The Future
of Home-based Care Over the last five years we built a strong growth platform that we believe is at the center of where healthcare is trending Doubled down on our belief in our Patient Direct business with the addition of Apria Track record of
strong growth throughout our path A strong player in the future of home-based care Faster recovery Safer Preferred by patients, providers, and payors Reimagining Patient Care at Home for Improved Quality of Life Strong organic growth post-M&A
($M) Revenue Patient Direct Proprietary to Owens & Minor, Inc.
Benefits of Home-based Care Allows
patients to receive treatment of chronic illnesses in their home Greater patient independence and improved outcomes 2 1 Growing demand for treatment of chronic illnesses Technology and product advancement allow for additional chronic conditions to
be treated at home 4 Trends of Home-based Care Our Core Product Areas Diabetes Wound Care Sleep Respiratory Ostomy Urology NPWT Other DME 3 Can treat more complex healthcare needs in preferred home setting Proprietary to Owens & Minor, Inc.
A Market Leader in Home-based Care
Strategic position in key categories 85% of annual revenue is recurring revenue from existing patient base Diabetes category is primarily comprised of Type 1 and Type 2 insulin-dependent
patients A leading revenue cycle Revenue by Disease State 1 As of FY24. Proprietary to Owens & Minor, Inc. 290M Covered lives Globally Diverse Branded Manufacturers ~3.2M Active patients $2.7B Annual revenue1
Share of Active Patients by Disease
State of annual revenue is recurring revenue from existing patient base 85% Diabetes Wound Care Respiratory Incontinence/Urology A Market Leader in Home-based Care 290M Covered lives ~3.2M
Active patients1 $2.7B Annual revenue 1 As of FY24. Proprietary to Owens & Minor, Inc. Globally Diverse Branded Manufacturers
PD partners with payors covering
290M Lives PD Payor Mix A Market Leader in Home-based Care Access to ~85% of U.S. population Growing Medicare Advantage population Majority of payor partnerships are evergreen Rated Best Overall Diabetes Supplier 2020-2023 Net Promoter Scores of
2-3x healthcare benchmarks 1 As of FY24. Proprietary to Owens & Minor, Inc. Covered lives1 $2.7B Annual revenue 290M Active patients ~3.2M Globally Diverse Branded Manufacturers
A Market Leader in Home-based Care
Contracted with High Quality Manufacturers Proprietary to Owens & Minor, Inc. 1 As of FY24. $2.7B Annual revenue 290M Covered lives ~3.2M Active patients Globally Diverse Branded Manufacturers
Solid Foundation in Product &
Healthcare Services Historical foundation Very large market 3 primary market players Must better align production costs and product portfolio Status quo not acceptable Well positioned to achieve success Significant Opportunity to Drive Profitability
Medical Distribution (MD) Global Products Outsourced Logistics & Services Proprietary to Owens & Minor, Inc.
Rotech Overview Proprietary to
Rotech at-a-Glance Proven Track
Record A leading Home Medical Equipment distributor Partner of choice for many payors, providers, suppliers and patients 40+ years in operation led by a seasoned management team with 100+ years of combined experience Compelling Geographic Footprint
Robust and scalable national infrastructure Reliable national delivery across approximately 325 locations in 46 states Comprehensive Product Portfolio Focused on high growth end markets for patients with chronic conditions Diversified mix across
patients, suppliers, payors and geographic footprint Extensive product offerings Key Stats $726mm 2024A Net Revenue 4,200+ Employees 300+ Account Executives $198mm 2024A Adj. EBITDA1 1 Rotech Adj. EBITDA is a Non-GAAP measure and includes O&M
equivalent compliance EBITDA addbacks. For a reconciliation of Net Income, the most directly comparable GAAP measure, to Adj. EBITDA, see slide 43. Proprietary to Owens & Minor, Inc.
Product Lines Overview Oxygen Sleep
Therapy Ventilators Wound Care Diabetes Durable Medical Equipment/Other Products Oxygen concentrators, portable oxygen concentrators, home fill systems, tanks and oxygen contents CPAP, BiPAP, and supplies such as face masks, humidifiers and tubing
Non-invasive and invasive ventilators NPWT equipment and wound care dressings and supplies Blood glucose monitoring supplies, test strips and insulin pumps Walkers, wheelchairs, hospital beds and other mobility aids Treatment Areas Chronic
obstructive pulmonary diseases, such as emphysema and chronic bronchitis Obstructive sleep disorders, which are commonly occurring comorbid conditions with many disease states including diabetes and obesity Neuromuscular disease; Thoracic
restrictive disease; Chronic respiratory failure related to COPD Chronic wounds caused by skin breakdown and poor circulation; Open wounds from surgical procedures Improve the blood sugar control for patients with diabetes Improve the quality of
life for patients with home care needs Rotech Active Patients Served in 2024 384,000+ 470,000+ 21,800+ 32,400+ 8,600+ 314,600+ Proprietary to Owens & Minor, Inc.
Key Credit Highlights Proprietary
to Owens & Minor, Inc.
Key Credit Highlights Summary 1

Frequently Asked Questions

What is the purpose of the presentation by Owens & Minor?

The presentation discusses the proposed acquisition of Rotech Healthcare and its implications for Owens & Minor.

What financial metrics are highlighted in the presentation?

Key financial metrics include revenue of $10.7 billion and an adjusted EBITDA of $576 million for FY 2024.

What risks are associated with the transaction?

Risks include disruptions to business operations, integration challenges, and uncertainties in financial performance due to the transaction.

What is the expected closing timeline for the transaction?

The targeted closing for the acquisition is set for the first half of 2025.

How is the potential sale of Products & Healthcare Services segment addressed?

The presentation mentions ongoing discussions for a potential sale but does not provide a specific timetable.

Last updated: Mar 20, 2025