Owens & Minor (NYSE: OMI) announced today that it has signed a
definitive agreement to acquire certain assets and liabilities of The
Burrows Company, a Chicago-based, privately-held distributor of medical
and surgical supplies to the acute-care market. For the year ended
December 31, 2007, The Burrows Company reported revenues of $603
million. Owens & Minor will pay $30.2 million for the net assets of The
Burrows Company and will assume the company’s
debt. The final purchase price will be subject to certain post-closing
adjustments. The acquisition is expected to be slightly dilutive to
Owens & Minor’s earnings for the remainder
of 2008. However the company’s guidance for
diluted earnings per share for 2008, including the impact of the
acquisition, remains unchanged at $2.30 to $2.40.
“The acquisition of The Burrows Company, a
large regional distributor with more than 75 years of experience in the
acute-care market, is a strong geographic fit for Owens & Minor,”
said Craig R. Smith, president & chief executive officer of Owens &
Minor. “The Burrows Company has a great
reputation for customer service and operational excellence, and we are
very excited about the prospect of bringing on this new business in the
fall. Based on the success of our most recent acquisition, we are
preparing a conversion plan that will provide customers with an orderly
transition. Once the transition is concluded, we expect to leverage the
revenue base and introduce these customers to the benefit of our
value-added programs and services, as well as our supply-chain
management expertise.”
The transaction is expected to close in the fall, pending regulatory
approvals. Immediately following the close of the transaction, Owens &
Minor will launch a conversion process designed to transition The
Burrows Company customers to Owens & Minor’s
systems by the end the second quarter of 2009. Subsequent to closing,
Owens & Minor will provide additional detail on the transaction.
Safe Harbor Statement
Except for historical information, the matters discussed in this press
release may constitute forward-looking statements that involve risks and
uncertainties that could cause actual results to differ materially from
those projected. These risk factors are discussed in reports filed by
the company with the Securities & Exchange Commission. All of this
information is available at www.owens-minor.com.
The company assumes no obligation, and expressly disclaims any such
obligation, to update or alter information, whether as a result of new
information, future events, or otherwise.
About The Burrows Company
The Burrows Company, headquartered in Chicago, has served the acute-care
provider industry’s medical and surgical
distribution needs since 1932, and is the nation’s
largest independently owned medical/surgical distributor of branded
products in the country. The Burrows Company aims to help customers
control and reduce health care expenditures, as well as achieve
measurable savings and supply chain efficiencies. To learn more about
the company, visit its website at www.burrowsco.com.
Owens & Minor, Inc.,
(NYSE: OMI) a FORTUNE 500 company headquartered in Richmond,
Virginia, is the leading distributor of national name-brand medical and
surgical supplies and a healthcare supply-chain management company.
Owens & Minor is also a member of the Russell 2000®
Index, which measures the performance of the small-cap segment of
the U.S. equity universe, as well as the S&P SmallCap 600, which
includes companies with a market capitalization of $300 million to $2
billion that meet certain financial standards. With a diverse product
and service offering and distribution centers throughout the United
States, the company serves hospitals, integrated healthcare systems,
alternate care locations, group purchasing organizations, the federal
government and consumers. Owens & Minor provides technology and
consulting programs that improve inventory management and streamline
logistics across the entire medical supply chain--from origin of product
to patient bedside. For news releases, or for more information about
Owens & Minor, visit the company Web site at www.owens-minor.com.
Investor Conference Call Information
Owens & Minor will conduct a conference call on Wednesday, August 20,
2008 at 9:00 a.m. Eastern Time to discuss the acquisition announcement.
The phone number for the Owens & Minor conference call is 877-748-0043
with passcode #61241923. The international dial-in number is
706-758-5871 with access code #61241923. The call will also be available
by replay for two weeks by calling 800-642-1687 with access code
#61241923. The call will also be Webcast at www.owens-minor.com
under the Investor Relations section.
Owens & Minor, Inc.
Truitt Allcott, 804-723-7555
Director,
Investor & Media Relations
truitt.allcott@owens-minor.com
or
Chuck
Graves, 804-723-7556
Director, Finance & Investor Relations
chuck.graves@owens-minor.com