Platinum Equity to Buy Owens & Minor P&HS

Platinum Equity has agreed to purchase the Products & Healthcare Services business from Owens & Minor, marking a strategic carve-out that positions the unit as an independent distributor focused on acute-care customers. Under the deal structure, Owens & Minor will retain a 5% equity interest in the carved-out company.

The Richmond, Virginia–based P&HS operation is a vertically integrated platform supplying medical and surgical consumables to hospitals, health systems and other institutional providers across the United States. Platinum’s intent is to operate the business as a standalone enterprise and to accelerate investments in operations, distribution and customer service capabilities.

Jacob Kotzubei, Co‑President of Platinum Equity, framed the acquisition as an opportunity to apply the firm’s carve‑out and operational toolkit to a healthcare distribution asset with stable demand dynamics. Platinum’s leadership said demographic trends and rising healthcare utilization underpin long‑term demand for reliable medical-supply logistics—a secular backdrop the firm expects to leverage through targeted capital spending and efficiency programs.

Edward A. Pesicka, President and CEO of Owens & Minor, said the transaction enables the company to streamline its portfolio while maintaining a minority ownership position to capture future upside. The arrangement reflects a broader trend in the sector where large health‑supply corporations divest non‑core segments to specialist private equity owners capable of intensive operational improvement.

Matthew Louie, a Managing Director at Platinum Equity, noted the firm’s prior experience buying and operating businesses spun out of major industrial and manufacturing groups, and cited that track record as a differentiator in realizing growth for P&HS. The buyer pointed to recent carve-outs across its portfolio as a template for integrating the unit, optimizing distribution routes and reinforcing supplier relationships.

The transaction is expected to be completed by year‑end, subject to customary regulatory review and closing conditions. Financial institutions advising Platinum Equity include Bank of America and Fifth Third, while legal and financing counsel were provided by multiple law firms. Citi and Wells Fargo served as advisors to Owens & Minor, which also engaged outside legal counsel.

Platinum Equity, founded in 1995 and active across manufacturing, distribution and services, manages a substantial portfolio of operating companies. The firm emphasises hands‑on operational programs following acquisitions and targets businesses that can benefit from focused investment and separation from larger corporate parents.