Full Press Release Details
Owens & Minor and Rotech Healthcare Mutually Agree to Terminate Previously Announced Acquisition
OMI Remains Committed to Continued Growth in the Strong Home-based Care Market
Will Focus on Deleveraging & Driving Profitable Growth
RICHMOND, VA June 5, 2025 Owens & Minor, Inc. (NYSE: OMI) today announced it has mutually agreed with Rotech Healthcare
Holdings Inc. to terminate the previously announced acquisition. Under the terms of the merger agreement, Owens & Minor has paid $80 million to Rotech Healthcare. Owens & Minor will also redeem the $1 billion of notes
issued in April 2025, that include a special mandatory redemption provision in accordance with their terms, and terminate the incremental term loan commitments and senior unsecured bridge loan commitments provided by our lenders that would have been
utilized to consummate the acquisition.
For many months, our teammates along with the Rotech team have worked tirelessly in cooperation with the
Federal Trade Commission to close this transaction, and while we believe there would have been an ample benefits to patients, payors and providers by adding Rotech to our Patient Direct business, however, the path to obtain regulatory clearance for
this merger proved unviable in terms of time, expense, and opportunity, said Edward A. Pesicka, President & Chief Executive Officer of Owens & Minor.
We are confident in our strategy and will continue to focus our efforts on growing our Patient Direct business while remaining committed to
strengthening our balance sheet through the use of improved cash flow generation for deleveraging. The home-based care market is a dynamic, growing market and we are extremely well positioned to help those with chronic conditions get the care and
service they need and deserve. Also, we continue to work with a number of interested parties around the potential sale of our Products and Healthcare Services business and in the meantime, we will continue to actively work to strengthen that
business and tap into its significant upside .
I want to thank our teammates, partners and everyone at Rotech for their effort and cooperation
over the last several months and we look forward to a bright future with many years profitable growth, Pesicka concluded.
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 . For more information about
This press release shall not constitute an offer to buy the notes issued in April 2025, which will be conducted pursuant to a special mandatory redemption in
accordance with the terms of the notes.
Jackie Marcus or Nick Teves