Owens & Minor Inc. (OMI, Financials) shares plummeted 35.2% on Monday, closing at $9.23, after the company said it is moving forward with its planned acquisition of Rotech Healthcare Holdings, announcing that it has begun raising funds to support the deal. The company expects to finalize the purchase in the first half of 2025.
Owens & Minor projects a net loss between $288 million and $311 million but sales for the fourth quarter between $2.67 billion and $2.70 billion. A major component of the loss is a $310 million goodwill impairment charge linked to its Apria subsidiary, which the firm ascribed to market conditions—including a declining stock price and increasing interest rates.
With a net loss ranging from $355 million to $378 million, full-year income for 2024 is anticipated to be between $10.67 billion and $10.70 billion. Notwithstanding the losses, the business highlighted strong success in its Patient Direct division, which witnessed consistent mid-single-digit growth. Over the previous year, Owens & Minor also lowered overall debt by more than $240 million.
Pesicka said he still sees great demand for the company's goods and services and is hopeful about its long-term plan.
On Feb. 28, Owens & Minor will provide its complete fourth-quarter and yearly financial figures.
