Owens & Minor, Inc. (OMI) has announced a mutual agreement with Rotech Healthcare Holdings Inc. to terminate their previously announced acquisition. The decision follows extended regulatory challenges that rendered the transaction unfeasible in terms of time, cost, and strategic opportunity.
On July 22, 2024, Owens & Minor entered into an Agreement and Plan of Merger to acquire Rotech for $1.36 billion in cash. After factoring in anticipated tax benefits of approximately $40 million, the net purchase price was estimated at $1.32 billion. Under the merger agreement, Owens & Minor has paid $80 million to Rotech.
Owens & Minor will redeem $1 billion of notes issued in April 2025, which included a special mandatory redemption clause. The company will also cancel related term loan and bridge loan commitments that were arranged to finance the deal.
"The path to regulatory clearance for this merger proved unviable in terms of time, expense, and opportunity. We are confident in our strategy and will continue to focus our efforts on growing our Patient Direct business while remaining committed to strengthening our balance sheet through the use of improved cash flow generation for deleveraging", said Edward A. Pesicka, President & CEO of Owens & Minor.
In addition, Owens & Minor is actively exploring the potential sale of its Products and Healthcare Services business, while continuing to optimize its performance and unlock long-term value.
With over 100 years of service and more than 20,000 teammates globally, Owens & Minor delivers healthcare solutions from the hospital to the home through its trusted brands, including Apria, Byram, and HALYARD. Currently, OMI is trading at $7.69, up by 15.77 percent on the New York Stock Exchange.
For comments and feedback contact: editorial@rttnews.com
Business News
May 22, 2026 14:46 ET Minutes of the latest Fed policy session was the highlight of the week along with survey data on the U.S. housing market. In Europe, survey data signaled the trends in the euro area private sector. Further, consumer price inflation data from the U.K. was in focus. In Asia, various economic indicators from China drew attention to the health of the economy.