LONDON, UK / ACCESSWIRE / November 3, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Owens & Minor, Inc. (NYSE: OMI), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=OMI. The Company announced on November 01, 2017, that it has entered into a definitive agreement to acquire the surgical and infection prevention (S&IP) business of Halyard Health, Inc. (NYSE: HYH) for approximately $710 million in cash. For immediate access to our complimentary reports, including today's coverage, register for free now at:

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Details of the Acquisition

  • Owens & Minor intends to finance the transaction with a combination of cash and debt, and for this, the Company has obtained committed financing, subject to customary closing conditions, from BofA Merrill Lynch.

  • The transaction also includes the Halyard Health brand and its current information technology platform. Halyard's remaining business will undergo a phased restructuring to address dis-synergies and corporate costs associated with the divestiture.

  • Following the transaction, Halyard will provide information technology and other transition services to Owens & Minor for at least one year. The latter will also receive transition services from Halyard.

  • The transaction, which is expected to close in Q1 2018, is subject to regulatory approval and other customary closing conditions. Post-acquisition, Halyard will continue to be headquartered in Alpharetta, Georgia.

  • The deal is likely to increase scale and profitability across Owens & Minor's global business, also enhancing its owned-brand product portfolio.

Transaction Provides Significant Growth Opportunities to Owens & Minor

P. Cody Phipps, Chairman, President, and CEO of Owens & Minor, stated that Halyard's S&IP portfolio of products and services is highly complementary to the innovative solutions Owens & Minor is currently providing to its customers. P. Cody added that the Company is taking aggressive steps to strengthen and diversify its business model, and the transaction supports and enhances the ability to execute its strategy and provide significant opportunities for growth.

Acquisition Accelerates Halyard's Transformation to Becoming a Pure-Play Medical Devices Company

Joe Woody, CEO of Halyard, mentioned that this transaction accelerates the Company's transformation to becoming a pure-play medical devices company and provides significant resources to accelerate its growth. The S&IP business and its employees will have an exciting future as part of Owens & Minor, who is considered to be an ideal buyer with strong expertise in marketing and distributing these products in our major markets.

Financial and Strategic Benefits

  • Acquisition to Drive Owens & Minor's Revenue Growth, EPS, and Cash Flow: S&IP's differentiated product portfolio is expected to drive Owens & Minor's growth in revenue, operating earnings, EPS, and cash flow. The acquisition allows Owens & Minor to focus on new opportunities for unique product solutions and value-enhancing bundles and expansion into more clinically relevant areas.

  • Transaction Expected to be Accretive to Non-GAAP Diluted Earnings Per Share in 2018: Owens & Minor expects to acquire around $1 billion in revenues and approximately $80 million of annual EBITDA following the transaction. The Company also expects annual pre-tax synergies to reach approximately $40 million by year three post-closing. The transaction is also expected to be accretive to non-GAAP diluted earnings per share in 2018, with increasing accretion thereafter.

  • Divestiture Enables Halyard to Achieve Market Leading Positions in Pain Management Franchise: Halyard will pursue a dual-track growth strategy through research and development (R&D) and M&A, with a focus on maintaining and extending its leadership positions in its core franchises and expanding into attractive adjacencies. The divestiture of the S&IP enables the Company to achieve market-leading positions in its core franchises of pain management and chronic care.

Owens & Minor Acquired Byram Healthcare

On May 02, 2017, Owens & Minor signed a definitive purchase agreement to acquire Byram Healthcare, a wholly owned subsidiary of Mediq B.V., for approximately $380 million in cash. Byram is a leading domestic distributor of medical supplies sold directly to patients and home health agencies.

About Owens & Minor, Inc.

Founded in 1882, Owens & Minor, Inc. is a leading healthcare logistics company dedicated to connecting the World of Medical Products to the Point of Care by providing vital supply chain services to healthcare providers and manufacturers of healthcare products. The Company provides logistics services across the spectrum of medical products from disposable medical supplies to devices and implants. Owens & Minor is headquartered in Virginia, United States.

About Halyard Health

Headquartered in Alpharetta, Georgia, Halyard Health is a medical technology company delivering clinically-superior products and solutions in infection prevention, surgical solutions, respiratory health, digestive health, pain management, and IV therapy.

Last Close Stock Review

At the close of trading session on Thursday, November 02, 2017, Owens & Minor's stock price tumbled 10.93% to end the day at $18.67. A total volume of 2.84 million shares were exchanged during the session, which was above the 3-month average volume of 967.56 thousand shares. The Company's shares are trading at a PE ratio of 11.88 and have a dividend yield of 5.52%. At Thursday's closing price, the stock's net capitalization stands at $1.21 billion.

At the closing bell, on Thursday, November 02, 2017, Halyard Health's stock rose 3.94%, ending the trading session at $47.00. A total volume of 985.85 thousand shares have exchanged hands, which was higher than the 3-month average volume of 372.15 thousand shares. The Company's stock price soared 10.30% in the last three months, 25.23% in the past six months, and 39.09% in the previous twelve months. Moreover, the stock surged 27.10% since the start of the year. The stock is trading at a PE ratio of 45.32 and currently has a market cap of $2.20 billion.

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