A PYMNTS Company

Owens & Minor Faces Federal Inquiry Over Planned Acquisition of Rotech Healthcare

By  |  October 15, 2024

Owens & Minor, a Virginia-based healthcare services company, has received a request from the Federal Trade Commission (FTC) for additional information regarding its proposed acquisition of Rotech Healthcare, according to a filing made by the company on Tuesday. This move signals heightened regulatory scrutiny of the $1.36 billion transaction, initially announced in July.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The FTC’s request, often referred to as a “second request,” will extend the waiting period required by U.S. antitrust laws. Owens & Minor, which provides products and services to hospitals and home care providers, said it is cooperating fully with the FTC’s review. Despite the regulatory delay, the company remains optimistic that the acquisition will close within the first half of 2025, per information shared with MorningStar.

    The acquisition of Rotech, a privately held medical equipment company, is seen as a strategic move for Owens & Minor as it seeks to expand its footprint in home-based care, a rapidly growing sector within the healthcare industry. According to MorningStar, the deal is expected to accelerate growth by enabling Owens & Minor to offer a broader range of services to patients receiving care at home.

    Owens & Minor’s planned acquisition is part of a broader trend in healthcare, as companies pivot toward home care services, which are becoming increasingly important for aging populations and post-acute care patients. However, the FTC’s involvement underscores the agency’s ongoing focus on antitrust concerns in the healthcare sector, which has seen a flurry of mergers and acquisitions in recent years.

    Source: Morning Star