Owens & Minor, Inc. Terminates Acquisition Agreement with Rotech Healthcare Holdings

According to a June 5 press release, Owens & Minor, Inc. announced it has mutually agreed with Rotech Healthcare Holdings to terminate their previously announced acquisition. As part of the termination, Owens & Minor paid Rotech $80 million and will redeem $1 billion in notes due April 2025, along with terminating related loan commitments intended to fund the deal.

CEO Edward Pesicka explained that despite months of cooperation with the Federal Trade Commission, regulatory approval proved unattainable within a reasonable timeframe and cost. Owens & Minor remains confident in its strategy, focusing on growing its Patient Direct business, strengthening its balance sheet, and exploring potential sales of its Products and Healthcare Services segment.

Pesicka thanked all involved parties and expressed optimism about Owens & Minor’s future growth prospects in the home-based care market and beyond.