Owens & Minor has agreed to sell its Products & Healthcare Services (P&HS) segment to Platinum Equity for $375m in cash, while retaining a 5% equity stake and $150m in tax attributes. The deal allows Owens & Minor to focus on home-based care operations, aligning with its strategic shift in recent years.

P&HS, based in the US, distributes medical supplies to health systems and hospitals nationwide. Owens & Minor will receive the cash payment at closing, along with a preferred equity return. The company’s president and CEO, Edward Pesicka, sees this sale as a crucial step towards becoming a leading home-based care platform.

The transaction is set to be finalized by the end of the year, pending regulatory approval. Platinum Equity co-president Jacob Kotzubei expressed pride in investing in the future of P&HS and providing Owens & Minor with a divestiture solution. This move marks a significant transformation for Owens & Minor into a pure-play home-based care business.

Read more at Yahoo Finance: Owens & Minor announces sale of P&HS segment for $375m