PLATINUM EQUITY TO ACQUIRE PRODUCTS & HEALTHCARE SERVICES BUSINESS FROM OWENS & MINOR
MWN-AI** Summary
On October 7, 2025, Platinum Equity announced a definitive agreement to acquire the Products & Healthcare Services (P&HS) segment from Owens & Minor (NYSE: OMI). The Richmond, VA-based P&HS is a leading national distributor of medical and surgical supplies primarily catering to hospitals and healthcare providers in the United States. Owens & Minor will retain a 5% equity stake in the business as part of the deal.
Jacob Kotzubei, Co-President of Platinum Equity, emphasized their commitment to investing in the future of P&HS, highlighting the firm’s extensive experience in enhancing operational capabilities and sustainability within acquired businesses. Platinum Equity aims to leverage its track record in acquiring healthcare and supply chain firms to enhance P&HS's service delivery and reinforce its position in the evolving healthcare market.
Platinum Equity’s Managing Director, Matthew Louie, noted that the favorable macroeconomic trends, including an aging U.S. population and increasing healthcare demand, present a compelling opportunity for growth. He expressed confidence in P&HS's potential as a standalone entity with a focus on operational transformation and customer-centric service.
The transaction, subject to regulatory review and customary closing conditions, is anticipated to finalize by the year’s end. Platinum Equity is receiving financial guidance from Bank of America and Fifth Third, while Owens & Minor is advised by Citi and Wells Fargo, along with legal support from Kirkland & Ellis.
Founded in 1995, Platinum Equity features approximately $50 billion in assets under management and a portfolio of about 60 operating companies across various industries. The acquisition of P&HS marks another strategic addition to their expansive portfolio, reinforcing their dedication to the healthcare sector.
MWN-AI** Analysis
Platinum Equity's acquisition of Owens & Minor's Products & Healthcare Services (P&HS) business presents a strategic opportunity for both investors and stakeholders in the healthcare sector. The transaction, noteworthy for Platinum's history of successful carve-outs, positions P&HS to leverage enhanced operational capabilities and a focused growth trajectory in a critical sector.
Firstly, Platinum Equity's expertise in transforming and scaling businesses is a significant advantage. The firm's investment acumen can drive the operational transformation needed for P&HS to navigate the evolving healthcare landscape. Stakeholders should consider that the healthcare supply chain, particularly for medical and surgical supplies, is poised for substantial growth. The U.S. aging population and increasing healthcare demands are expected to sustain long-term growth in medical supply distribution, making P&HS an attractive asset.
Moreover, with Owens & Minor retaining a 5% equity stake, this indicates the management's confidence in P&HS's future under Platinum's stewardship. Such alignment between former and new ownership often enhances operational continuity and strategic focus. This partnership may further facilitate effective integration of best practices that can optimize supply chain operations and amplify customer-centric services.
Investors should monitor market reactions and financial performance post-acquisition. The initial phase following the closure of such transactions often reveals market sentiment towards the new operational direction. With investment banks like Bank of America and Fifth Third involved, there is also a robust financial advisory framework supporting the transaction, indicating that sound financial strategies are in place to uphold P&HS’s growth.
In conclusion, Platinum Equity’s acquisition of P&HS from Owens & Minor reflects a significant development within the healthcare industry. Given the favorable macroeconomic dynamics and Platinum's operational strategy, observers should remain optimistic about the potential for P&HS to emerge as a leader in the medical supply distribution sector. Investors looking for opportunities in healthcare should monitor this space closely, as the developments could provide valuable insights and investment opportunities moving forward.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
PLATINUM EQUITY TO ACQUIRE PRODUCTS & HEALTHCARE SERVICES BUSINESS FROM OWENS & MINOR
PR Newswire
Standalone P&HS anticipated to benefit from Platinum's carve-out experience, sector expertise and commitment to growth
Owens & Minor to retain a 5% equity stake in the business
LOS ANGELES , Oct. 7, 2025 /PRNewswire/ -- Platinum Equity announced today that it has entered into a definitive agreement to acquire the Products & Healthcare Services ("P&HS") segment of Owens & Minor (NYSE: OMI). Owens & Minor will retain a five percent interest in the business.
Headquartered in Richmond, VA , P&HS is a vertically-integrated medical supply distribution platform primarily serving the acute care market. It is a leading national distributor of medical and surgical supplies for hospitals, health systems, and other healthcare providers across the United States .
"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," said Jacob Kotzubei , Co-President of Platinum Equity. "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."
Platinum Equity has invested in numerous healthcare and supply chain businesses and has 30 years of experience acquiring and operating global businesses that have been part of large corporate entities. In recent years the firm has acquired businesses from firms like Ball Corporation, Caterpillar, Emerson Electric, Ingersoll Rand and Kohler, among others.
"Platinum Equity is the perfect home for the Products & Healthcare Services business," said Edward A. Pesicka , President & Chief Executive Officer of Owens & Minor. "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."
Platinum Equity Managing Director Matthew Louie said that P&HS's profile, combined with favorable macro dynamics, make the opportunity attractive for Platinum Equity's hands-on operational approach to creating value.
"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," said Louie. "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."
The transaction is expected to close near the end of the year, subject to regulatory review and other customary closing conditions.
Bank of America and Fifth Third are serving as financial advisors to Platinum Equity on the P&HS acquisition. Gibson, Dunn & Crutcher LLP is serving as legal advisor, Willkie Farr & Gallagher LLP is serving as debt financing counsel, and Latham & Watkins LLP is serving as special regulatory counsel to Platinum Equity on the transaction.
Citi and Wells Fargo are acting as financial advisors to Owens & Minor. Kirkland & Ellis is serving as Owens & Minor's legal advisor.
About Platinum Equity
Founded in 1995 by Tom Gores , Platinum Equity is a global investment firm with approximately $50 billion of assets under management and a portfolio of approximately 60 operating companies that serve customers around the world. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O ® – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 30 years Platinum Equity has completed more than 500 acquisitions.
Contact :
Dan Whelan
Platinum Equity
dwhelan@platinumequity.com
SOURCE Platinum Equity
FAQ**
How will the acquisition of Owens & Minor Inc. OMI's Products & Healthcare Services segment enhance Platinum Equity's portfolio in the healthcare sector?
What specific operational capabilities do you believe Platinum Equity can bring to the Products & Healthcare Services business of Owens & Minor Inc. OMI?
How does Platinum Equity's investment strategy align with the evolving needs of the healthcare market following the acquisition of Owens & Minor Inc. OMI's P&HS segment?
What are the anticipated benefits for Owens & Minor Inc. OMI in retaining a 5% equity stake in the Products & Healthcare Services business post-acquisition?
**MWN-AI FAQ is based on asking OpenAI questions about Owens & Minor Inc. (NYSE: OMI).
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