Standalone P&HS anticipated to benefit from Platinum's carve-out experience, sector expertise and commitment to growth Owens & Minor to retain a 5% equity stake in the business , /PRNewswire/ -- Platinum Equity announced today that it has entered into a definitive agreement to acquire the Products & Healthcare Services ("P&HS") segment of Owens & Minor (NYSE:Â OMI). Owens & Minor will retain a five percent interest in the business. Headquartered in Richmond, VA, P&HS is a vertically-integrated medical suppl ...

Core Insights - Platinum Equity's portfolio company Motors & Armatures (MARS) has signed a definitive agreement to sell its parts division, MARS Parts, to CSW Industrials for $650 million in cash, with an additional earn-out of up to $20 million based on revenue targets [1][2][5] Group 1: Transaction Details - The transaction is expected to close before the end of calendar year 2025, pending regulatory approval and other conditions [2] - MARS Parts specializes in HVAC/R parts, including motors and capacitors, while the equipment distribution division will remain under Platinum Equity as Heat Controller [3][4] Group 2: Operational Transformation - Since Platinum Equity's investment in July 2024, MARS has undergone a significant operational transformation, enhancing its business model and financial profile [3][5] - The leadership team at Heat Controller, led by CEO Philip Windham, is focused on scaling operations and diversifying the product portfolio [6][7] Group 3: Future Outlook - Platinum Equity remains optimistic about the HVAC sector's long-term growth and plans to support Heat Controller's expansion through strategic mergers and acquisitions [5][6] - The company aims to drive cost savings and enhance product offerings, indicating a proactive approach to market opportunities [7]

Core Insights - The session focuses on two complex SAP carve-outs delivered for a customer, highlighting the intricacies involved in such processes [1] - The discussion will cover challenges, surprises, and lessons learned from these carve-outs, emphasizing a collaborative transformation approach that mitigates risks and accelerates results [3] Company and Industry Overview - Ibrahim Kanalici serves as the solutions lead for M&A at SNP, overseeing support for customers and partners in navigating data complexities and mergers, acquisitions, and carve-outs [2] - The session features key participants including Matthias Wienerroither, SNP's project manager, and Sajith Sasidaran, Managing Partner at TCS, who are integral to the projects [3]

Market Concentration & Authoritarianism - Monopolies and concentrated economic power work hand in hand with authoritarian figures, making it easier for political control, especially in media markets where a few companies dominate [2] - Extreme consolidation of economic power is ripe for abuse by authoritarian leaders, potentially leading to censorship and control of information [3] - Historical lessons show industrial monopolists facilitated the rise of anti-democratic pressures, prompting the 1950 anti-merger act to prevent extreme consolidation in America [5][6] Media Consolidation & Free Speech - Media market concentration poses risks to the flow of information and news, potentially allowing a few companies to control what people see [8] - Exercising free speech rights requires markets where people can access the free flow of information, rather than being dictated by a handful of gatekeepers [9] - Nextar's proposed merger with Tegna would give it reach into roughly 80% of television households, exceeding the FCC's current rule of 39% maximum [7] Regulatory Framework & Political Influence - The current administration is potentially weaponizing the merger process to advance political grievances and culture war issues, which is disturbing [12] - Corporations may prioritize profit and self-enrichment over commitment to democracy and principles of liberty when faced with pressure from the government [16] - The laws are in place to police economic consolidation, but there has been a bipartisan choice to accept a philosophy that monopolies were good for 40 years [17][18] Impact on Consumers & Democracy - Extreme concentration of economic power is incompatible with democracy, requiring a focus on fair competition and decentralization of economic power [19] - Mergers have resulted in higher prices, layoffs, and food deserts, giving corporations more power to push people around [21] - Recommitting to fair competition and decentralization of economic power is crucial to avoid dependence on the whims of a few executives [25]

Market Trends - Dealmaking activity is increasing [1] - Corporate divorces are also on the rise [1] - Some of the largest deals this year involve dismantling megamergers from previous years [1]

Antitrust Enforcement - The Justice Department dismissed two senior antitrust enforcers [1] - Internal disagreements arose regarding the discretion of the antitrust division in policing mergers [1]

Industry Trends - The industry is undergoing a transition towards streaming and on-demand services, driven by consumer demand [1] - This shift is expected to lead to a period of shakeout and transition for legacy players [2] - Mergers between legacy players are seen as a logical outcome of the industry's evolution [3] Company Strategy - The company considers itself fortunate to have entered the new ecosystem with a new model, avoiding the complexities of transitioning from legacy business models [2] - While exploring all opportunities, the company is unlikely to be a buyer in potential mergers and acquisitions [5] - The company prioritizes a disciplined approach to due diligence and focuses on building rather than buying [6] Risks and Challenges - Large media mergers have a mixed track record, with both successful and unsuccessful examples [4] - Regulatory complexities can pose challenges to potential mergers [3]