RICHMOND, VA – Owens & Minor, Inc. has entered into a definitive agreement to acquire Rotech Healthcare Holdings, Inc. (Rotech), a privately held home-based care business headquartered in Orlando, Florida, for $1.36 billion in cash.

As a large national home medical equipment company in the United States, Rotech has more than 4,200 employees and provides products and services in 46 states through approximately 325 operating locations. Rotech generated approximately $750 million of revenue and an EBITDA margin of nearly 30% in 2023.

“Rotech squarely fits into our existing Patient Direct segment and directly aligns with the strategy we outlined last December during our Investor Day, supporting our expansion in the very large and fast-growing home-based care space,” said Edward A. Pesicka, president & CEO of Owens & Minor. “We are excited to acquire a high-quality company like Rotech, an opportunity that doesn’t come along very often, and I look forward to welcoming the Rotech teammates into the Owens & Minor family.

“This transaction highlights our disciplined approach toward inorganic growth, with a focus on strategic fit, value creation for shareholders, prudent capital allocation and most importantly, providing improved service and experience to patients, providers, and payors,” Pesicka continued. “Furthermore, we are committed to deleveraging the balance sheet to below 3.0x in approximately 24 months after closing.”

“The team and I look forward to being part of Owens & Minor due to their commitment to providing best-in-class products and services to patients in their homes,” said Robin Menchen, president & CEO of Rotech. “Owens & Minor is a natural home for the Rotech team, and we believe the combination will benefit patients, providers, payors, and employees.”