Completing a deal announced late last year, Owens & Minor announced this week finalized acquisition of a key business unit of Halyard Health. The surgical and infection prevention (S&IP) division was purchased by Owens & Minor in a $710 million cash deal.
Predominantly known as a healthcare logistics and supply chain management company, Owens & Minor’s purchase of the Halyard Health business unit transfers ownership of prominent brands such as the AERO SERIES* of gowns, several exam and surgical gloves, and a range of commonly used sterilizations wraps.
“The S&IP business provides a global manufacturing network, a strong pipeline of new products, and a successful track record of product development,” P. Cody Phipps, chairman, president, and CEO of Owens & Minor, said in a statement announcing the closed deal. “Additionally, the S&IP business will add scale to our existing own-brand product portfolio and our global sales team, contributing to expansion of the markets we serve. We are very pleased to welcome the Halyard Health S&IP teammates and their exceptional products and capabilities to the Owens & Minor family.”
When reporting financials for the first quarter of 2018, Halyard Health CEO Joe Woody pointed to the sale of the S&IP division as a important step as the company develops a tighter focus.
“With the divestiture now complete, we have become a focused pure-play medical device company in attractive high-margin, high-growth end markets with roughly $800 million of acquisition capacity to execute our dual-track growth strategy,” Woody said in a recent conference call.