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Owens & Minor, Richmond, VA, has agreed to acquire certain assets of the acute-care medical and surgical supply distribution business of McKesson Medical-Surgical, a business unit of McKesson Corporation, for approximately $170 million. After an estimated six-month transition plan is completed, the acquisition is expected to generate at least $800 million in incremental annual revenue for Owens & Minor.
"This acquisition is a unique opportunity and a great strategic fit for Owens & Minor," said Craig R. Smith, president & chief executive officer of Owens & Minor. "Acute-care medical and surgical distribution is our core competency and we look forward to significantly expanding our customer base and having the opportunity to introduce these new customers to our extensive supply chain management products and services."
Under terms of the $170 million purchase agreement, Owens & Minor will acquire certain assets, including net inventory valued at approximately $130 million, and will assume customer contracts associated with McKesson's acute-care business.
Owens & Minor and McKesson will work together to achieve a seamless integration of the acute-care business into Owens & Minor according to a six-month transition plan, which will be launched immediately after the close of the transaction.
"We expect to achieve a number of synergies with this acquisition, particularly with our infrastructure, technology and distribution network," said Smith. "We are also excited about the opportunity to expand our sales team with McKesson's acute-care sales representatives and look forward to welcoming them and other McKesson acute-care employees to Owens & Minor."
Owens & Minor, Inc. is a distributor of medical and surgical supplies and a healthcare supply chain management company. The company serves hospitals, integrated healthcare systems, alternate care locations, group purchasing organizations, the federal government and consumers.
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