M&A
confidence high
sentiment positive
materiality 0.85
Owens & Minor to buy Rotech for $1.36B cash; expects ~$0.15 EPS accretion in second year
ACCENDRA HEALTH INC/VA/
- Purchase price $1.36B cash; net $1.32B after ~$40M tax benefits; ~6.3x LTM EBITDA ex-synergies.
- Rotech 2023 revenue ~$750M with ~30% EBITDA margin; 4,200+ employees, ~325 locations in 46 states.
- Expected close by end of 2024; subject to HSR; financed with $775M term loan B and $625M bridge.
- Synergies ~$50M by end of year three; adjusted EPS neutral in first full year, accretive in second year.
- Owens & Minor reaffirms 2024 full-year guidance; preliminary Q2 results reported separately.