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