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Owens & Minor, Inc. (OMI) is a global healthcare solutions company that provides essential products and services to healthcare providers and patients. The company specializes in the distribution, manufacturing, and sourcing of medical-surgical products, as well as delivering home healthcare equipment and services. With a focus on supporting care from hospitals to homes, Owens & Minor operates through two primary business segments.
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Products & Healthcare Services - Provides distribution and outsourced logistics services for medical and surgical products, manufactures and sources medical-surgical products through production and kitting operations, and offers value-added services to healthcare providers globally.
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Patient Direct - Delivers home healthcare equipment and related services directly to patients, including disposable medical supplies through Byram Healthcare and integrated home healthcare solutions through Apria Healthcare.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Edward A. Pesicka ExecutiveBoard | President, CEO & Director | Board Member at Fortrea | Joined OMI in March 2019. Leads strategic initiatives, operational improvements, and debt reduction. Formerly held senior roles at Thermo Fisher Scientific and TRW, Inc.. | |
Andrew G. Long Executive | EVP & CEO, Products & Healthcare Services | None | Joined OMI in November 2019. Former CFO of OMI. Leads the P&HS segment, driving profitability and operational improvements. | |
Heath Galloway Executive | EVP, General Counsel & Corporate Secretary | None | Joined OMI in February 2013. Promoted to EVP in May 2023. Oversees legal and corporate governance matters. | |
Jennifer Stone Executive | EVP & Chief Human Resources Officer | None | Joined OMI in June 2024. Former VP of HR at Medtronic and Head of Talent Management at Target Corporation. | |
Michael W. Lowry Executive | SVP, Corporate Controller & Chief Accounting Officer | None | Joined OMI in 1988. Oversees accounting and financial reporting. Held various finance leadership roles within OMI. | |
Perry Bernocchi Executive | EVP & CEO, Patient Direct Segment | None | Joined OMI in 2006. Former CEO of Byram Healthcare. Leads the Patient Direct segment, focusing on home-based care growth. | |
Snehashish Sarkar Executive | EVP & Chief Information Officer | None | Joined OMI in 2022. Promoted to EVP in May 2024. Leads IT and digital transformation initiatives. | |
Carissa L. Rollins Board | Director | CIO at Illumina, Inc.; Board Chair at YWCA Minneapolis; Board Member at Grand Canyon Conservancy | Director since July 2022. Extensive IT and cybersecurity expertise. Former CIO at UnitedHealthcare. | |
Gwendolyn M. Bingham Board | Director | None | Director since March 2020. Retired U.S. Army Lieutenant General with extensive logistics and supply chain expertise. | |
Kenneth Gardner-Smith Board | Director | Chief People Officer at DaVita, Inc. | Director since March 2022. Extensive experience in healthcare operations and talent strategies. | |
Mark A. Beck Board | Chair of the Board | CEO of B-Square Precision, LLC; Board Member at IDEX Corporation | Director since 2019. Chair since September 2020. Former CEO of JELD-WEN Holding, Inc. and executive at Danaher Corporation. | |
Rita F. Johnson-Mills Board | Director | Board Member at Nyxoah S.A., Quest Analytics, Ellipsis Health | Director since June 2022. Former CEO of UnitedHealthcare Community Plan of Tennessee. Extensive healthcare expertise. | |
Robert J. Henkel Board | Director | Adjunct Professor at University of Pittsburgh Graduate School of Public Health | Director since 2019. Former CEO of Ascension Health. Extensive healthcare leadership experience. | |
Stephen W. Klemash Board | Director | None | Director since 2021. Retired EY Partner with expertise in corporate governance, risk management, and accounting. | |
Teresa L. Kline Board | Director | Board Member at Amedisys, SaVida Health, Presbyterian Healthcare Services | Director since June 2022. Former CEO of Health Alliance Plan of Michigan. Extensive healthcare leadership experience. |
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You mentioned that the patient eligibility backlog within Patient Direct has not been eliminated as hoped; can you elaborate on the underlying issues causing these delays and provide a revised timeline for clearing this backlog?
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With increased transportation and storage costs impacting your margins, what specific measures are you implementing to mitigate these expenses, and how do you expect these costs to trend in the coming quarters?
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Given that respiratory therapies such as NIV and oxygen continue to lag, what are the specific challenges in these categories, and what strategies do you have in place to return them to growth in 2025?
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Considering the delay in closing the Rotech acquisition to the first half of 2025 due to the FTC's request for additional information, what are the main concerns raised, and how might this affect your integration plans and expected synergies?
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With the upcoming Chinese tariffs on key categories such as facial protection and gloves, how significant do you expect the impact to be on the industry, and how are you positioning Owens & Minor to capitalize on this situation given your non-China-dependent manufacturing footprint?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
A major nationwide manufacturer that also provides distribution services, competing in the Products & Healthcare Services segment. | |
Medline Industries, Inc. | Another major nationwide manufacturer providing distribution services, competing in the Products & Healthcare Services segment. |
Hogy Medical | A product manufacturer competing in the Products & Healthcare Services segment. |
Multigate Medical Products | A product manufacturer competing in the Products & Healthcare Services segment. |
Mölnlycke Health Care | A product manufacturer competing in the Products & Healthcare Services segment. |
HARTMANN Group | A product manufacturer competing in the Products & Healthcare Services segment. |
A major outsourced logistics competitor serving healthcare manufacturers in the U.S. | |
Another major outsourced logistics competitor serving healthcare manufacturers in the U.S. | |
A national provider delivering products and services to patients' homes, competing in the Patient Direct segment. | |
Lincare | A national provider delivering products and services to patients' homes, competing in the Patient Direct segment. |
Rotech | A national provider delivering products and services to patients' homes, competing in the Patient Direct segment. |
Aerocare | A national provider delivering products and services to patients' homes, competing in the Patient Direct segment. |
A national provider delivering products and services to patients' homes, competing in the Patient Direct segment. | |
A national provider delivering products and services to patients' homes, competing in the Patient Direct segment. | |
A pharmacy benefit manager competing in the home healthcare market. | |
A large technology company with emerging pharmacy offerings that has entered the healthcare market and could disrupt the home healthcare market. | |
A large technology company that has disrupted other supply businesses and could potentially enter the home healthcare market. |
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Vizient | GPO contract to provide distribution services | All | 34% of consolidated net revenue in 2023 |
Premier, Inc. | GPO contract to provide distribution services | All | 19% of consolidated net revenue in 2023 |
HealthTrust Purchasing Group (HPG) | GPO contract to provide distribution services | All | 11% of consolidated net revenue in 2023 |
Recent press releases and 8-K filings for OMI.
- Owens & Minor Inc. filed a current report on April 4, 2025, under Form 8-K, confirming its status as a publicly traded company listed on the NYSE (OMI) with principal offices in Virginia.
- The filing details key financial accounting adjustments, including definitions and disclosures on restructuring charges, non-cash expenses, and other items affecting Consolidated Net Income.
- It also outlines detailed descriptions of indebtedness and additional debt facility terms, which may influence the company’s financial position and related contractual obligations.
- Owens & Minor announced a private offering of $1 billion of 10.000% senior secured notes due 2030, priced at 100% of face value.
- The offering is expected to close on April 4, 2025, with the notes accruing interest at 10.000% per year and maturing on April 15, 2030.
- Proceeds will help finance the proposed acquisition of Rotech Healthcare Holdings Inc. and fund additional corporate purposes, with gross proceeds initially deposited in an escrow account if the acquisition is not completed concurrently.
- Owens & Minor, Inc. announced a private offering of $600 million senior secured notes due 2030 subject to customary market conditions.
- The offering is structured with a full, unconditional guarantee by the Company and its domestic subsidiaries, and if the proposed Rotech acquisition is not consummated concurrently, proceeds will be held in escrow until certain conditions are met.
- Net proceeds are intended to finance the acquisition, repay Rotech debt, cover related fees, and fund working capital and general corporate purposes.
- Definitive Agreement: On July 22, 2024, Owens & Minor entered into a definitive agreement to acquire Rotech Healthcare Holdings, aiming to expand its home healthcare platform and Patient Direct business.
- Financing Details: The transaction is financed with $800 million Incremental Term Loan B and $600 million of other secured debt, targeting a net leverage of ~4.2x initially and deleveraging to below 3.0x post-transaction, with a closing expected in the first half of 2025.
- Scale and Synergies: The combined company is projected to achieve FY 2024 revenue of $11.4 billion and Adj. EBITDA of $774 million, with potential run-rate cost savings of $50 million by the end of year three.