Platinum Equity Completes Acquisition of Owens & Minor Healthcare Services
Platinum Equity recently announced the completion of its acquisition of Owens & Minor Products & Healthcare Services (P&HS). This strategic move aims to leverage Platinum's extensive experience in carve-outs and its commitment to enhancing the healthcare service sector.
Benefits of the Acquisition
Following the acquisition, Owens & Minor will continue operating under its established brand while it functions as a standalone entity within Platinum's investment portfolio. This decision reflects Platinum's dedication to preserving the brand’s legacy while ensuring the business retains the flexibility needed to adapt to a quickly changing healthcare market.
Commitment to Growth and Excellence
Jacob Kotzubei, Co-President of Platinum Equity, emphasized the firm's commitment to supporting Owens & Minor's next phase as an independent company. He remarked that the resources and operational expertise at Platinum will allow it to strengthen the company’s foundation and improve its responsiveness to the healthcare industry's needs. The goal is to ensure that they deliver essential products effectively and reliably.
Owens & Minor's Market Position
Owens & Minor P&HS is recognized as a major player in medical supply distribution, particularly for acute care settings, and boasts a robust platform that serves hospitals and healthcare providers across the United States. This acquisition positions Platinum Equity to not only maintain but also expand this vital service in a competitive healthcare landscape.
Strategic Vision for Owens & Minor
Matthew Louie, Managing Director at Platinum Equity, highlighted the importance of maintaining continuity during this transition. He stated that Owens & Minor has a rich history of prioritizing customer needs, and Platinum is dedicated to enhancing that commitment while implementing critical improvements. Plans include enhancing fulfillment performance and operational efficiency in distribution and manufacturing, alongside investments in their proprietary products.
Financial Advisory and Legal Support
The acquisition process involved substantial support from various financial institutions and legal advisors. Bank of America and Fifth Third acted as financial advisors for Platinum Equity, while leaders like Gibson, Dunn & Crutcher LLP provided legal counsel. The advisory team worked diligently to ensure a smooth transition and effective integration of Owens & Minor.
Citi and Wells Fargo's Role
Citi and Wells Fargo played essential roles as financial advisors for Owens & Minor, facilitating the necessary resources for this acquisition. Their guidance was pivotal in navigating the complex financial landscape surrounding the transaction.
About Platinum Equity
Founded by Tom Gores in 1995, Platinum Equity is a prominent global investment firm managing over $50 billion in assets. With a diverse portfolio encompassing around 60 operating companies across various industries, Platinum specializes in mergers and acquisitions. Their strategy, known as M&A&O, has led to successful operations across manufacturing, distribution, and technology sectors.
Frequently Asked Questions
What is the purpose of Platinum's acquisition of Owens & Minor?
Platinum Equity aims to leverage its experience to enhance Owens & Minor’s operations, allowing it to grow as a standalone company while focusing on customer service and efficiency.
What will happen to the Owens & Minor brand?
Owens & Minor will maintain its brand identity and operate independently within Platinum’s portfolio, ensuring it continues its legacy of customer commitment.
How does Platinum Equity plan to improve Owens & Minor's operations?
Through investments in supply chain enhancements and operational excellence, Platinum Equity intends to improve fulfillment performance and responsiveness to market needs.
Who were the advisors involved in the acquisition?
Bank of America, Fifth Third, Citi, and Wells Fargo served as financial advisors, while several law firms provided legal counsel to ensure a successful transaction process.
When did the acquisition take place?
The acquisition was announced as complete, marking a significant milestone for both Platinum Equity and Owens & Minor in the healthcare industry.
