Owens & Minor, Inc.
), leading supplier of healthcare products, recently completed its
earlier announced acquisition of the majority of Movianto Group.
Movianto is the European healthcare third-party logistics (3PL)
business of Celesio AG, a global provider of logistics in the
Owens & Minor purchased Movianto Group from Celesio AG for
roughly $158 million (€130 million). The company financed the
acquisition with its available cash. It exited the second quarter
with cash and cash equivalents of $224.9 million, up 41.3% year
While the buyout is expected to be dilutive to Owens &
Minor's earnings per share in 2012, it is envisaged to be accretive
from 2014 onwards. The acquisition also presents a feasible route
to enter the European market.
Movianto operates from 23 logistics centers in 11 European
nations. With a strength of 1,800 employees, the company renders
warehousing, transportation and cold chain logistics along with
value-added services like order-to-cash, repackaging and relabeling
of products. Thus, the acquisition will enable Owens & Minor to
serve a wider customer base of pharmaceutical and medical device
Owens & Minor is expected to make use of Movianto's
operational capabilities and diversify its service channels. The
acquisition will also allow the company to expand its foothold in
the global market, helped by the complementary services of
Per management, the acquisition has enhanced the scale and scope
of Owens & Minor's business in the field of third party
logistics. The company looks forward to lending assistance to its
manufacturing partners on an international platform through third
party logistic solutions.
Headquartered in Richmond, Virginia, Owens & Minor is a
Fortune 500 company which administers healthcare supply-chain
management solutions. The company continues to venture into new
markets and expand its core business processes. With strong
business fundamentals and foothold expansion in the European
market, it is well-positioned to accelerate growth in the years
However, Owens & Minor continue to rely on select customers
for a major share of its revenues. It also depends on group
purchasing organizations to seek significant contracts.
Additionally, the company faces a tough competitive landscape with
Owens & Minor currently holds a Zacks #4 Rank, which
translates into a short-term Sell rating.
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