Owens & Minor has entered into a definitive agreement to sell its Products & Healthcare Services (P&HS) segment to private equity firm Platinum Equity for $375 million in cash.

The Richmond, Virginia-based healthcare company will retain a 5% equity stake in the divested business, as well as certain tax assets valued at more than $150 million.

The move continues Owens & Minor’s shift toward focusing exclusively on the home-based care market, where it aims to consolidate its position as a core provider through its Patient Direct business. The company described the divestiture as a step toward simplifying operations and enabling a clearer valuation as a “pure play” in the homecare space.
“With the definitive agreement in place for Products & Healthcare Services, we will remain laser-focused on transforming the Company into a pure-play home-based care business,” said president and CEO Edward Pesicka. “The ability to dedicate our resources to the more profitable part of the legacy business will be value-enhancing for many years to come.”

The transaction includes a provision for a preferred equity return, meaning Owens & Minor could receive additional proceeds in the event of a future sale of the P&HS business.

Platinum Equity, a Los Angeles-based investment firm with experience in healthcare and logistics, indicated it plans to grow the P&HS business as a stand-alone company. “We are committed to growing the P&HS business and have strong conviction in its potential,” said Matthew Louie, managing director at Platinum Equity.

The deal remains subject to regulatory approvals, including clearance under the Hart-Scott-Rodino Act. Owens & Minor expects the sale to close by the end of 2025.

Owens & Minor will report third-quarter earnings on October 31 and host an investor call the same day. Citi and Wells Fargo advised the company on the transaction, while Bank of America and Fifth Third advised Platinum Equity.

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