Owens & Minor To Buy Surgical And Infection Prevention Unit Of Halyard Health

(RTTNews) - Owens & Minor (OMI) announced a definitive agreement to acquire the surgical and infection prevention business of Halyard Health, Inc. for approximately $710 million in cash. Halyard's S&IP business is a global provider of medical supplies and solutions for the prevention of healthcare-associated infections across acute care and non-acute care markets.

Owens & Minor also reported third-quarter adjusted net income of $24.3 million, or $0.40 per share, compared to $0.54 per share in last year's third quarter. Consolidated revenues were $2.33 billion, compared to $2.42 billion in the third quarter of 2016. The company also announced that it has revised outlook for non-GAAP earnings per share in 2017 to a range of $1.75 to $1.85, from a previous range of $1.90 to $2.00. For 2018, the company plans to provide updated guidance upon the close of the Halyard transaction, which is expected to occur in the first quarter of 2018.

With the S&IP deal, Owens & Minor expects to acquire approximately $1 billion in revenues and approximately $80 million of annual EBITDA. Additionally, Owens & Minor expects annual pre-tax synergies to reach approximately $40 million by year three post-closing. The company expects the transaction to be accretive to non-GAAP earnings per share in 2018, with increasing accretion thereafter.

Cody Phipps, CEO of Owens & Minor, said: "In today's rapidly changing healthcare industry, Owens & Minor is taking aggressive steps to strengthen and diversify our business model, and this transaction supports and enhances our ability to execute our strategy and provides significant opportunities for growth."

Separately, Owens & Minor, Inc. announced that its board has declared a dividend for the fourth quarter of 2017 in the amount of $0.2575 per share. The cash dividend is payable on December 29, 2017, to shareholders of record as of December 15, 2017.