Platinum Equity Expands Portfolio with Strategic Acquisition
Platinum Equity to Acquire Products and Healthcare Services Unit
Standalone P&HS anticipated to benefit from Platinum's carve-out experience, sector expertise, and commitment to growth
Owens & Minor retains a 5% equity stake in the business
LOS ANGELES – Platinum Equity has unveiled a definitive agreement to acquire the Products & Healthcare Services (P&HS) segment from Owens & Minor (NYSE: OMI). Owens & Minor will maintain a five percent equity interest in the ongoing operations of this health services segment.
Based in Richmond, P&HS stands out as a vertically-integrated medical supply distributor specifically catering to the acute care segment. It ranks as a leading national distributor of medical and surgical supplies, serving hospitals and healthcare providers throughout the country.
Jacob Kotzubei, Co-President of Platinum Equity, expressed enthusiasm about this transaction: "Owens & Minor has been vital in supporting healthcare providers and patients nationwide. We are excited to invest in the future of P&HS while providing a divestiture solution for Owens & Minor. The operational capabilities of Platinum will enhance P&HS's global capacity to deliver essential products and services to our customers when they need them the most."
With a track record of investing in healthcare and supply chain businesses, Platinum Equity boasts 30 years of expertise in managing and acquiring global companies previously integrated into larger corporate structures. The firm's portfolio includes businesses previously connected to large industry players like Ball Corporation and Caterpillar.
Edward A. Pesicka, President & CEO of Owens & Minor, acknowledged the move, stating, "Platinum Equity is the ideal home for our Products & Healthcare Services division. Their commitment to enhancing the customer-centric legacy of this business while strategically investing in its future will benefit all stakeholders for many years to come."
The Managing Director of Platinum, Matthew Louie, mentioned that the combination of P&HS's profile and favorable macroeconomic conditions makes this opportunity notably attractive. "As the U.S. population ages, the growing demand for healthcare services will create a sustained need for medical supply distribution," Louie articulated. "We are dedicated to expanding the P&HS business, confident in its potential as a standalone operation. We are eager to collaborate with the existing team on its growth and operational improvements."
The expected closure of this transaction will occur near the end of the year, pending regulatory approvals and customary conditions.
Financial specialists from Bank of America and Fifth Third are advising Platinum Equity on this acquisition, with Gibson, Dunn & Crutcher LLP acting as the legal counsel and Willkie Farr & Gallagher LLP managing debt financing, while Latham & Watkins LLP serves as the special regulatory counsel.
On the other hand, Citi and Wells Fargo have been retained as financial advisors to Owens & Minor, with Kirkland & Ellis acting in a legal advisory capacity.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is an internationally recognized investment firm managing approximately $50 billion in assets. With a diverse portfolio of around 60 operating companies, Platinum Equity excels in mergers and acquisitions while also focusing on operational strategies, featured prominently in its M&A&O trademark. Their ventures span various industries, including manufacturing, logistics, media, and telecommunications, with a history of over 500 completed acquisitions over the last three decades.
Contact:
Dan Whelan
Platinum Equity
[Contact Email]
Frequently Asked Questions
What is the significance of the acquisition by Platinum Equity?
The acquisition strengthens Platinum Equity's position in the healthcare sector and leverages its expertise in managing operational efficiencies.
How will the acquisition affect Owens & Minor?
Owens & Minor will retain a minority equity stake, ensuring a continued partnership while allowing Platinum Equity to manage operations independently.
What is the core business of P&HS?
P&HS primarily focuses on supplying medical and surgical products to hospitals and healthcare systems across the United States.
When is the transaction expected to close?
The closing is anticipated to occur toward the end of the year, depending on regulatory reviews and other customary conditions.
How does Platinum Equity plan to grow P&HS?
Platinum Equity aims to enhance P&HS's capabilities through strategic investments and operational improvements that align with demand trends in healthcare provision.
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