Owens & Minor has entered into a definitive agreement to sell its Products & Healthcare Services (P&HS) segment to Platinum Equity for $375m in cash.

The company will retain a 5% equity stake in the business and preserve over $150m in tax attributes.

The transaction enables Owens & Minor to focus on home-based care operations. Over the recent years, the company has strategically shifted towards expanding its position in this sector.

P&HS, headquartered in the US, operates as a vertically integrated platform for the distribution of medical supplies, primarily catering to the acute-care market.

It distributes medical and surgical supplies to health systems, healthcare providers, and hospitals across the country.

Under the agreement, Owens & Minor will receive the cash payment at closing, subject to customary adjustments for transaction expenses, working capital, and net debt.

The company will also retain a preferred equity return that could result in receiving a portion of future divestiture proceeds.

Owens & Minor president and CEO Edward Pesicka said: “Today's announcement represents another critical step forward in the strategic transformation of Owens & Minor into a leading, pure-play home-based care platform.

“With the definitive agreement in place for Products & Healthcare Services, we will remain laser-focused on transforming the company into a pure-play home-based care business that will drive even more value for our patient direct stakeholders.”

The transaction is expected to conclude by the end of this year, subject to regulatory review and customary closing conditions.

Platinum Equity co-president Jacob Kotzubei said: “Owens & Minor has played a vital role in supporting healthcare providers and patients across the country, and we are proud to invest in the future of P&HS.

“We are pleased to provide Owens & Minor a divestiture solution for P&HS and are grateful for the continued partnership.”