Owens & Minor Inc. said it is planning to sell its European logistics business Movianto to France-based privately held healthcare logistics services company EHDH Holding Group.
Ed Pesicka, CEO of the Mechanicsville, Va.-based healthcare distributor, said the potential transaction will allow Owens & Minor to focus on and invest in differentiated products and services, including its U.S. distribution businesses.
In February 2019, Reuters had reported that Owens & Minor had been looking for potential suitors to buy the company. Last year, S&P Global Ratings also downgraded the company's issuer credit rating due to concerns related to pricing pressure and competition, among other things. Fitch Ratings had also downgraded Owens & Minor's long-term issuer default rating due to uncertainty regarding revenue stability and debt obligations, among other things.
Owens & Minor said in a Jan. 16 press release that the sale proceeds — which were not disclosed — are expected to be used to reduce debt.
The proposed transaction is expected to close in the first half of 2020.
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