Owens & Minor to divest Products & Healthcare Services segment to Platinum Equity for $375M (Part 1)
Owens & Minor (NYSE: OMI) announced that it 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, a move that will significantly reshape the company’s structure and sharpen its focus on home-based patient care. As part of the transaction, Owens & Minor will also retain a 5% equity stake in the divested business, maintaining a minority interest in the future growth of the P&HS segment.
The Richmond, Virginia-based healthcare logistics and distribution company said the divestiture marks a transformational step in its long-term strategy to become a pure-play leader in the home-based care market. The transaction is expected to streamline operations, improve profitability, and unlock more than $150 million in tax attributes for Owens & Minor, providing additional financial flexibility.
“Today’s announcement represents another critical step forward in the strategic transformation of Owens & Minor into a leading, pure-play home-based care platform,” said Edward A. Pesicka, President and CEO of Owens & Minor. “With the definitive agreement in place for Products & Healthcare Services, we will remain laser-focused on transforming the company into a home-based care business that drives even more value for our Patient Direct stakeholders.”
Pesicka added that the decision aligns with Owens & Minor’s mission to concentrate on its Patient Direct platform, which delivers home-based care solutions for patients with chronic conditions. “Going forward, we will be positioned among the leaders in a dynamic market where we can capitalize on our trusted brands and long-standing record of putting the patient first,” he said. “By dedicating resources to the more profitable part of our business, we’ll be creating long-term value for our shareholders and partners.”
A strategic pivot toward home care
The sale of the P&HS segment follows months of internal review and public discussions around optimizing Owens & Minor’s business portfolio. Earlier this year, the company confirmed it was exploring strategic alternatives for its Products & Healthcare Services division, which provides medical and surgical supplies, logistics, and distribution services to hospitals and healthcare systems worldwide.
By divesting this segment, Owens & Minor will shift its focus entirely to its Patient Direct division, the cornerstone of its strategy to expand leadership in the home-based care market — an area that has seen rapid growth driven by demographic shifts, chronic disease management, and advances in remote care technology.
The move simplifies the company’s business model and is expected to allow for a more focused valuation based on its growing presence in home health and patient care services. Analysts have noted that the separation could help Owens & Minor’s remaining business achieve stronger operational margins and accelerate revenue growth through a streamlined portfolio.
A partnership rooted in long-term vision
Pesicka praised Platinum Equity as “the perfect home” for the P&HS unit, citing the firm’s extensive experience in healthcare operations and supply chain management. “Their commitment to building on the customer-centric legacy of the business and to strategically investing in innovation will serve all stakeholders well long into the future,” he said.
Platinum Equity, founded in 1995, has built a reputation for acquiring and growing industrial, healthcare, and service-oriented businesses. The firm has completed more than 350 acquisitions globally and currently manages assets across multiple sectors. Its healthcare portfolio includes investments in distribution, diagnostics, and life sciences, with past transactions such as the $2.1 billion acquisition of LifeScan from Johnson & Johnson in 2018.
“Owens & Minor has played a vital role in supporting healthcare providers and patients across the country, and we are proud to invest in the future of P&HS,” said Jacob Kotzubei, Co-President of Platinum Equity. “With Platinum’s operational resources, we’re committed to further enhancing P&HS’s global capabilities to deliver essential products and services when and where its customers need them.”
The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in the first half of 2026. Upon completion, Owens & Minor will emerge as a more focused healthcare platform, dedicated entirely to home-based clinical care and patient support services — a segment positioned for robust long-term growth as the U.S. healthcare system increasingly shifts care delivery outside of traditional hospital settings.
The divestiture of Owens & Minor’s Products & Healthcare Services (P&HS) segment to Platinum Equity marks one of the company’s most significant strategic shifts in recent history — a deliberate move designed to focus entirely on its Patient Direct home-based care platform. The $375 million transaction not only simplifies Owens & Minor’s operational structure but also signals a broader transformation toward a high-growth, patient-centered business model aligned with evolving healthcare delivery trends.
Refocusing on home-based care
Owens & Minor’s Patient Direct division has become the centerpiece of its growth strategy, offering home-based care solutions to patients managing chronic illnesses such as respiratory and cardiac conditions. Through this segment, the company provides medical equipment, supplies, and ongoing support to patients outside of traditional hospital environments — a market that continues to expand rapidly as home healthcare and remote patient management gain traction across the U.S.
“Patient Direct represents the future of Owens & Minor,” said Edward A. Pesicka, the company’s president and CEO. “We’ve built strong capabilities in serving patients directly in their homes, and this divestiture allows us to dedicate all our focus and resources to growing that platform.”
By divesting its P&HS division, Owens & Minor will transition from a diversified healthcare supply company to a pure-play home-based care leader, a transformation aimed at improving margins and driving long-term shareholder value. The move positions the company to capitalize on demographic and systemic trends such as an aging population, chronic disease prevalence, and hospital-to-home care migration — areas that represent the next frontier in healthcare delivery.
Strengthening financial flexibility and shareholder value
The $375 million cash infusion from Platinum Equity provides Owens & Minor with substantial financial flexibility to de-leverage its balance sheet, invest in growth initiatives, and enhance operational efficiency. In addition, the company will retain more than $150 million in tax attributes, which are expected to create meaningful financial benefits over the coming years.
Analysts view the transaction as a strategic realignment that could unlock greater valuation for Owens & Minor by removing lower-margin, capital-intensive segments and refocusing on higher-growth businesses. The retained 5% equity stake in P&HS ensures that the company continues to benefit from the future success of the divested unit while maintaining its financial agility.
“By simplifying our business model, we can now better align our resources with the most profitable and sustainable part of our operations,” Pesicka said. “This decision enhances our ability to drive consistent revenue and profit growth while ensuring we remain a trusted partner in patient care.”
Platinum Equity’s healthcare strategy
For Platinum Equity, the acquisition of P&HS represents an opportunity to build upon an established healthcare distribution platform with a strong customer base and operational infrastructure. The private equity firm plans to leverage its global portfolio experience — particularly in supply chain management and healthcare operations — to expand the segment’s reach and strengthen its performance.
“Owens & Minor’s P&HS business has a long-standing reputation for quality and reliability,” said Jacob Kotzubei, Co-President of Platinum Equity. “Our goal is to invest strategically to ensure the company continues to deliver essential products and services while adapting to the evolving needs of healthcare providers and patients.”
Platinum’s track record in healthcare investments includes scaling companies with global operations, streamlining logistics, and modernizing technology platforms to enhance service delivery. The firm’s operational expertise and capital resources are expected to position P&HS for growth in both domestic and international markets, particularly in the supply chain and clinical support sectors.
A reshaped Owens & Minor
Once the transaction closes, Owens & Minor will emerge as a leaner, more focused healthcare organization centered around its Patient Direct business, which is well-positioned to benefit from long-term shifts in care delivery. The divestiture follows other recent transformation initiatives under Pesicka’s leadership, aimed at optimizing operations and refocusing the company on segments with stronger growth potential and recurring revenue streams.
Industry analysts have pointed out that this repositioning aligns Owens & Minor with broader healthcare trends emphasizing home-based care, digital integration, and patient-centered service models. As more patients receive treatment and monitoring at home, demand for connected medical devices, remote diagnostics, and delivery logistics continues to rise — areas where Owens & Minor already maintains deep expertise.
“This is not just a divestiture; it’s a repositioning for the future,” said Pesicka. “We’re moving forward as a company that is nimbler, more focused, and more aligned with the changing dynamics of healthcare delivery.”
Looking ahead
The sale of the P&HS segment to Platinum Equity is expected to close in the first half of 2026, subject to regulatory approvals and customary closing conditions. After completion, Owens & Minor will concentrate its efforts on strengthening the Patient Direct platform, investing in technology integration, and expanding its service offerings in chronic care management and home health support.
For Platinum Equity, the acquisition opens a new chapter for the P&HS business, which it intends to grow through innovation, strategic partnerships, and operational excellence. “We see tremendous potential in P&HS and look forward to supporting its next phase of growth,” Kotzubei said. “This partnership ensures continuity for employees, customers, and suppliers while creating the foundation for long-term success.”
As Owens & Minor narrows its focus to home-based patient care, the divestiture underscores an industry-wide trend: healthcare companies are reorienting their strategies toward care decentralization, patient convenience, and long-term value creation. With this transaction, both Owens & Minor and Platinum Equity are poised to benefit — one by doubling down on its strength in home health, and the other by acquiring a proven platform ready for strategic growth in healthcare supply and logistics.
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