Core Insights - Owens & Minor (OMI) has signed a definitive agreement to sell its Products & Healthcare Services (P&HS) segment to Platinum Equity for $375 million in cash, while retaining a 5% equity stake [1][8] - This strategic move positions the company as a pure-play leader in the rapidly growing home-based care market, aiming to enhance profitability and simplify its business model [2][11] - The transaction is expected to close by the end of 2025, pending regulatory approvals, and will result in a streamlined portfolio and improved financial flexibility for Owens & Minor [3][11] Financial Implications - The divestiture is anticipated to boost investor sentiment as Owens & Minor transitions to a home-based care platform, with the $375 million cash infusion and tax benefits potentially driving a near-term rally [5][9] - The retained equity interest in P&HS allows Owens & Minor to benefit from any future growth of the divested business, enhancing its long-term value creation potential [6][12] - The preservation of over $150 million in federal net operating loss carryforwards and other tax attributes will improve balance sheet flexibility and support future earnings [9] Market Positioning - The divestiture redefines Owens & Minor as a focused player in the home-based care sector, which is expected to command premium valuations compared to diversified supply businesses [11] - By concentrating resources on its Patient Direct platform, the company is better positioned for consistent revenue generation and margin expansion [12] - Platinum Equity plans to strengthen the P&HS platform as an independent business, indicating confidence in the long-term relevance of the segment [10]