'Sysco for medical supplies'

'Grainger for hospitals'

• Healthcare Distribution Services: Provides global supply chain solutions for medical and surgical products, delivering essential supplies to hospitals and other healthcare providers.
• Medical Device and Supply Manufacturing: Develops and produces a range of medical products, including surgical supplies, wound care, and infection prevention products, sold under proprietary brands.

Owens & Minor (symbol: OMI) primarily sells its products and solutions to other companies within the healthcare industry (B2B).

According to its latest annual report (Form 10-K), Owens & Minor serves a diverse customer base and does not have any single customer that accounts for more than 10% of its consolidated net revenues. Therefore, specific major customer companies are not individually disclosed.

Instead, OMI's primary customer categories include:

• Hospitals and Health Systems: This broad category includes individual acute care hospitals and larger organizational networks that encompass multiple healthcare facilities and services.
• Integrated Delivery Networks (IDNs): These are organizations that own and operate a range of healthcare facilities and services, aiming to provide coordinated care across a continuum from primary care to specialty services and long-term care.
• Home Healthcare Providers: This category encompasses companies and organizations that offer medical care, assistance, and supplies to patients in their homes, supporting post-acute care and chronic disease management.

Edward A. Pesicka, President & Chief Executive Officer

Mr. Pesicka has served as President & Chief Executive Officer and a Director of Owens & Minor since March 2019. Before joining Owens & Minor, he served as an independent consultant and advisor in the healthcare, life science, and distribution industries from January 2016. From January 2000 through April 2015, he held various roles of increasing responsibility at Thermo Fisher Scientific, including most recently as Chief Commercial Officer & Senior Vice President. Prior to Thermo Fisher Scientific, he spent eight years at TRW Inc. in finance roles and three years with PricewaterhouseCoopers as an auditor.

Jonathan A. Leon, Executive Vice President, Chief Financial Officer

Mr. Leon has served as Executive Vice President, Chief Financial Officer since September 23, 2024. He previously served as Senior Vice President, Corporate Treasurer of Owens & Minor since May 2018 and as Interim Chief Financial Officer from June 21, 2024, to September 23, 2024. He joined Owens & Minor in January 2017 as Vice President, Treasurer. Before joining Owens & Minor, Mr. Leon worked for The Brinks Company from 2008 to 2017, where he served as Treasurer.

Perry A. Bernocchi, Executive Vice President, CEO, Patient Direct

Mr. Bernocchi has served as Executive Vice President, CEO, Patient Direct since March 2023. Prior to this, he was the Chief Executive Officer of the Company's Byram Healthcare division from 2009 to March 2023. He joined Byram Healthcare in 2006 as its Chief Operating Officer, and previously served as Chief Operating Officer of Hemophilia Resources of America for five years prior to its sale to Accredo Health.

Andrew G. Long, Executive Vice President, Chief Executive Officer, Products & Healthcare Services

Mr. Long has served as Executive Vice President, Chief Executive Officer, Products & Healthcare Services since October 2022. Before this role, he was Executive Vice President & Chief Financial Officer of Owens & Minor since joining the Company in November 2019. Mr. Long previously served as the Chief Executive Officer of Insys Therapeutics, Inc. From 2015 to 2017, he was Senior Vice President of Global Finance at Patheon, a pharmaceutical company, where he worked on initiatives leading up to Patheon's initial public offering. Prior to Patheon, he served as Vice President of Finance for multiple divisions at Thermo Fisher Scientific from 2006 until 2015.

Jennifer A. Stone, Executive Vice President & Chief Human Resources Officer

Ms. Stone was named Executive Vice President & Chief Human Resources Officer of Owens & Minor, effective June 3, 2024. Before joining the Company, from 2022 to June 2024, she served as the Vice President, Human Resources, Medical Surgical Portfolio, Surgical Operating Unit, at Medtronic. From 2018 to 2022, she was Vice President, Human Resources Global Functions at Medtronic. She began with Medtronic in 2017 as the Senior Director, Global Talent Management. Prior to Medtronic, Ms. Stone spent more than 20 years at Target Corporation in various roles of increasing responsibility, including most recently as Head of Talent Management.

The increasing entry and expansion of major e-commerce and logistics technology platforms (e.g., Amazon Business, specialized healthcare tech startups) into the highly fragmented healthcare supply chain for medical products and services. These players leverage advanced technology, vast fulfillment networks, and direct-to-customer models to offer potentially lower costs, greater efficiency, and a broader range of products, thereby challenging the traditional distributor's role as an intermediary between manufacturers and healthcare providers. This trend, while complex in healthcare, mirrors historical disruptions where technology-first companies disintermediate established distribution channels.

Owens & Minor (OMI) operates in several addressable markets through its two primary segments: Products & Healthcare Services and Patient Direct. The estimated sizes of these markets are detailed below:

• Medical and Surgical Supply Distribution: The U.S. medical supplies wholesaling industry is estimated to be approximately $326.4 billion in 2025. The U.S. medical device distribution services market was estimated at USD 76 billion in 2024.
• Healthcare Logistics and Supply Chain Management: The global healthcare third-party logistics market was estimated at USD 261.39 billion in 2024 and is projected to reach USD 406.36 billion by 2030. The global healthcare logistics market was valued at USD 93.19 billion in 2024.
• Medical Kitting and Custom Procedure Trays: The global prepackaged medical kit and tray market size was US$ 24.61 billion in 2024 and is projected to reach US$ 55.37 billion by the end of 2034.
• Sterilization Services: The global sterilization services market size was estimated at USD 5.60 billion in 2024 and is anticipated to reach around USD 10.64 billion by 2034. The U.S. sterilization services market size accounted for USD 1.75 billion in 2024.
• Home Healthcare Supply Delivery (Patient Direct): The U.S. home healthcare market size accounted for USD 194.24 billion in 2024, and is projected to hit around USD 222.61 billion by 2025. Other estimates place the U.S. home healthcare services market at USD 162.35 billion in 2024.
• Patient Engagement Solutions: The U.S. patient engagement solutions market size was valued at USD 7.59 billion in 2024 and is expected to grow at a CAGR of 19.77% from 2025 to 2030.

Owens & Minor (NYSE: OMI) is expected to drive future revenue growth over the next 2-3 years primarily through its strategic focus on the Patient Direct segment, which is positioned to become the company's sole business following the divestiture of its Products & Healthcare Services segment. Key drivers include:

1. Market Outperformance and Expansion in Home-Based Care: Owens & Minor anticipates its Patient Direct segment to continue outpacing the broader home-based care market, with a target of at least 200 basis points above market growth. This segment leverages a strong platform to capitalize on the increasing momentum of the home-based care market, which is a significant growth area in healthcare.
2. Sustained Demand in Key Patient Direct Product Categories: Strong demand across served indications, particularly in diabetes products and sleep supplies, is a consistent driver of top-line growth within the Patient Direct segment. The company has seen positive returns from investments aimed at driving growth in these areas, which are expected to continue through 2025.
3. Diversification and Expansion of Therapy Portfolio: Owens & Minor is successfully expanding its therapy portfolio within the Patient Direct segment. Categories such as ostomy, wound care, urology, and chest wall oscillation have demonstrated strong growth, indicating the company's ability to broaden its product offerings and capture additional market share beyond its core products.
4. Strategic Investments and Operational Efficiencies: The company is making strategic investments in its Patient Direct segment to enhance its market position and operational capabilities. These include investments in distribution centers and initiatives aimed at improving the patient onboarding process and simplifying supply renewals, which are expected to contribute to sustained growth.
5. Recapturing Diabetes Growth through Improved Adherence and Customer Acquisition: While diabetes growth has experienced some fluctuations, Owens & Minor is actively ramping up efforts to regain stronger growth in this category. Strategies focus on improving therapy adherence and acquiring new customers across its direct medical equipment (DME) and pharmacy channels, indicating a concerted effort to optimize this significant product area.

Share Repurchases

• On February 26, 2025, Owens & Minor's Board of Directors authorized a share repurchase program of up to $100 million over the subsequent 24 months.
• In the first quarter of 2025, the company repurchased approximately 0.2 million shares of its common stock for an aggregate of $1.5 million at an average price of $8.66 per share.

Share Issuance

• Owens & Minor completed an underwritten public offering of 9,746,250 shares of its common stock at $20.50 per share, resulting in gross proceeds of approximately $199.8 million.

Outbound Investments

• On March 29, 2022, Owens & Minor completed the acquisition of Apria, Inc. for approximately $1.7 billion (net of $144 million in cash acquired), integrating it to form the new Patient Direct segment.
• On July 22, 2024, the company entered into a definitive agreement to acquire Rotech Healthcare Holdings Inc. for $1.36 billion in cash, with the transaction expected to close in the first half of 2025.
• On October 10, 2025, Owens & Minor 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, a move intended to transform OMI into a pure-play market leader in home-based care.

Capital Expenditures

• Consolidated capital expenditures were $32.813 million in 2020 and $17.065 million in 2021.
• Capital expenditures were $167 million in 2022 and $208 million in 2023, primarily focused on patient service equipment and strategic/operational efficiency initiatives.
• The company's outlook for 2025 projects gross capital expenditures between $250 million and $270 million.