Owens & Minor, Inc. (NYSE: OMI) completed the sale of its Products & Healthcare Services (P&HS) segment and the Owens & Minor brand to private‑equity firm Platinum Equity on December 31 2025. The transaction closed for $375 million in cash and a 5% equity stake in Platinum Equity, and included the transfer of tax attributes exceeding $150 million. The deal also transferred the Owens & Minor brand to the buyer, allowing the company to rebrand its publicly traded parent as Accendra Health, Inc. (ticker ACH).
The divestiture marks the final step in Owens & Minor’s strategic shift toward a pure‑play home‑based care business. By shedding the low‑margin distribution arm that generated 85% of revenue but operated at sub‑1% margins, the company will focus on its higher‑margin Patient Direct segment, which has been expanding its clinical services and supply‑chain capabilities for chronic‑condition patients. The move is designed to simplify the business model, improve operating leverage, and position the company for long‑term growth in a market that is expanding due to demographic tailwinds and technology adoption.
Financially, the sale is expected to reduce net debt by roughly $375 million, bringing the company’s debt balance from over $2.2 billion to a more manageable level. The proceeds will also free capital for strategic investments in the home‑care platform, including technology upgrades and geographic expansion. The improved leverage profile is anticipated to lower the company’s cost of capital and enhance its ability to pursue growth initiatives without the burden of high debt servicing costs.
The rebranding to Accendra Health, Inc. aligns the company’s public identity with its new strategic focus. The new name and ticker (ACH) signal to investors that the organization is no longer a traditional medical‑product distributor but a dedicated home‑care platform. This rebranding is part of a broader effort to reposition the company in the eyes of customers, partners, and the market as a leader in chronic‑condition care delivery.
President and CEO Edward A. Pesicka described the transaction as an “inflection point” in the company’s transformation. He emphasized that the sale will allow Accendra Health to concentrate on supporting patients with chronic conditions, leveraging its comprehensive product portfolio, payor contracts, and national footprint to drive future growth. Pesicka also highlighted the company’s commitment to maintaining high service standards while scaling its home‑care operations.
Analyst commentary following the completion of the sale reflected a cautious outlook. UBS downgraded Owens & Minor to “Neutral” from “Buy” and cut its price target to $4.00 from $7.00, citing concerns about near‑term dis‑synergies and the loss of a key customer. Other analysts had mixed views prior to the deal, with consensus ratings ranging from “Hold” to “Moderate Sell” and price targets between $4.90 and $6.46. The mixed sentiment underscores the market’s uncertainty about the company’s ability to execute the transition successfully.
The transaction also highlights several headwinds and tailwinds for the company’s future. Headwinds include pricing pressure in the legacy distribution segment, cost inflation, and the need to invest heavily in technology and talent to support the home‑care platform. Tailwinds are driven by demographic trends favoring in‑home care, increasing demand for chronic‑condition management, and the company’s strong national footprint and payor contracts. Together, these factors suggest that while the company faces short‑term challenges, it is positioned to capture long‑term growth opportunities in the home‑care market.
In summary, the completion of the sale and the rebranding to Accendra Health represent a decisive shift in Owens & Minor’s business strategy. By divesting its low‑margin distribution arm and focusing on higher‑margin home‑care services, the company aims to improve financial performance, reduce debt, and capitalize on a growing market for chronic‑condition care. The transaction is expected to strengthen the company’s competitive position and provide a clearer path to sustainable growth.
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