Owens & Minor to Acquire ArcRoyal, a Privately Held Kitting Company Based in Ireland
Owens & Minor, Inc. (NYSE:OMI) announced that it signed a definitive agreement on September 19, 2014 to acquire ArcRoyal, a privately-held surgical kitting company based in Ireland. This transaction will expand Owens & Minor’s capabilities in the assembly of kits, packs and trays in the European healthcare market and is highly complementary to the previously announced agreement to acquire Medical Action Industries (NASDAQ:MDCI) , a U.S.-based kitting company. Because ArcRoyal’s primary customers are healthcare manufacturers, the transaction will further expand Owens & Minor’s manufacturer service offering and will complement Owens & Minor’s existing manufacturer-facing business in Europe. In addition, the combination of Medical Action Industries and ArcRoyal is expected to enhance Owens & Minor’s global sourcing opportunities.
“The acquisition of ArcRoyal will greatly expand our ability to produce kits, packs and trays for the healthcare market, and will provide us with immediate reach into European markets,” said James L. Bierman, president & chief executive officer of Owens & Minor. “ArcRoyal is well-known in Europe and has an established manufacturer customer base. We believe this acquisition gives us new opportunities for growth in the second largest global healthcare market.”
ArcRoyal was originally established in 1992 and is now a market leader in delivering custom solutions for a range of global healthcare companies. Products and services include custom procedure trays and a diverse range of essential surgical products, which reach hundreds of hospitals across Europe through corporate partners, distributors and other agents. Strategically located 30 miles from Dublin, ArcRoyal ships products to more than 30 countries.
The transaction is subject to certain customary regulatory approvals and is expected to close in fourth quarter of 2014. Financial details of the transaction were not disclosed.
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, that are subject to risks and uncertainties and other factors. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include risks related to the timing or ultimate completion of the transaction, as the transaction is subject to certain closing conditions, including receipt of all necessary regulatory clearances; the possibility that expected benefits may not materialize as expected; Owens & Minor’s ability to successfully implement integration strategies; as well as the ability to ensure continued performance or market growth of ArcRoyal’s products and services. These risks, uncertainties and other factors, and the general risks associated with the business of Owens & Minor described in the reports and other documents filed by with the Securities and Exchange Commission, could cause actual results to differ materially from those referred to in the forward-looking statements. All forward-looking statements are based on information currently available to Owens & Minor and are qualified in their entirety by this cautionary statement. Except as required by law, Owens & Minor does not assume any obligation to update any such forward-looking statements or other statements included in this press release.
Additional Information and Where to Find It
Owens & Minor uses its website as a channel of distribution for material company information, including news releases, investor presentations and financial information. This information is routinely posted and accessible under Investor Relations at www.owens-minor.com.
Owens & Minor, Inc. (NYSE:OMI) is a leading healthcare logistics company dedicated to Connecting the World of Medical Products to the Point of CareTM by providing vital supply chain services to healthcare providers and manufacturers of healthcare products. Owens & Minor provides logistics services across the spectrum of medical products from disposable medical supplies to devices and implants. With logistics platforms strategically located in the United States and Europe, Owens & Minor serves markets where three quarters of global healthcare spending occurs. Owens & Minor’s customers span the healthcare market from independent hospitals to large integrated healthcare networks, as well as group purchasing organizations, healthcare products manufacturers, and the federal government. A FORTUNE 500 company, Owens & Minor is headquartered in Richmond, Virginia, and has annualized revenues exceeding $9 billion. For more information about Owens & Minor, visit the company website at www.owens-minor.com.
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