Owens & Minor

Owens & Minor, Inc. (NYSE: OMI) is a global healthcare logistics company. Owens & Minor employs 15,400 people in 70+ countries. A FORTUNE 500 company, Owens & Minor was founded in 1882 in Richmond, Virginia, where it remains headquartered today. The company now has distribution, production, customer service and sales facilities located across the Asia Pacific region, Europe, Latin America, and North America.

Owens & Minor, Inc.
Public
Traded as
ISINUS6907321029 
IndustryHealth care
Founded1882 (1882)
Incorporated in 1926 (1926)
Founder
  • G. Gilmer Minor
  • Otho O. Owens
HeadquartersMechanicsville, Virginia, United States
Key people
  • Edward A. Pesicka[1][2]
  • (President & CEO)
  • Robert K. Snead[3]
  • (Executive VP & CFO)
Revenue 9.84 billion (2018)
177 million (2018)
70.4 million (2018)
Total assets 3.77 billion (2018)
Total equity 3.77 billion (2018)
Number of employees
  • ~6,700 (United States, 2017)
  • ~11,200 (outside U.S., 2018)
WebsiteOwens-Minor.com
Footnotes / references
[4][5][6][7]

[8]

President, CEO, Ed Pesicka joined Owens & Minor in March of 2019 and was appointed to the board of directors at the same time. Prior to that, Mr. Pesicka served as an independent consultant and advisor in the healthcare, life science and distribution industries since January 2016. From January 2000 through April 2015, he served in various roles of increasing responsibility at Thermo Fisher Scientific, a $17 billion manufactrer and supplier of a range of products to the research, healthcare, industrial and safety markets, including most recently as Chief Commercial Officer and Senior Vice President. Before joining Thermo Fischer Scientific, Ed spent eight years at TRW Inc., in a variety of finance roles and three years with PricewaterhouseCoopers as an auditor.[9][10]

History and legacy
Owens & Minor is now one of seven Fortune 500 companies headquartered in the Richmond area

Owens & Minor initially opened as a drug company on the streets of downtown Richmond, Virginia in 1882, inside a historic building which still stands today.[11] The company continued this business for over half a century, until in 1954 Gil Minor, Jr., bought out Bodeker Drug Company, a smaller operation in the same industry. Within a few years, the company grew steadily, and Owens, Minor & Bodeker was a leading member in the industry.[11]

In 1966 Owens, Minor & Bodeker acquired A&J Hospital Supply, a local company. This was the company's initial entrance to the market of medical and surgical distribution. By 1970, OMB had opened Cardinal Drug Centers to provide merchandising for more independent drug companies, and within two years the stores stocked more than 25,000 items. Around this time, disposable items were administered to hospitals for various medical procedures.[11] G. Gilmer Minor III, of direct relation to the founder, became CEO in 1984. By 1988, Owens & Minor began trading on the New York Stock Exchange under the ticker OMI. It was around this time that revenues earned the company a Fortune 500 title.[11]

By 1999, the corporation had refocused its pursuits towards medical supply chain management. Throughout the 2000s, Owens & Minor acquired various medical distributors across the United States, notably the hospital distributor McKesson Medical-Surgical Inc., a business unit of McKesson, for $152.1 million, on September 30, 2006.[11][12] In 2012, Owens & Minor entered the European market, opening offices in Spain, France, Germany, Poland, and the Czech Republic after the acquisition of Movianto Group.[13] In 2014, the corporation acquired ArcRoyal, a privately held medical kit company based in Dublin, Ireland.[14]

In 2018, Owens & Minor acquired Halyard Health’s Surgical & Infection Prevention business for $710 million, the largest acquisition in Owens & Minor’s history.[15] Halyard is a manufacturer of sterilization wrap, facial protection products, exam gloves, protective apparel, surgical drapes and surgical gowns.

Personnel

On March 7, 2019 Edward A. Pesicka joined the company as the President and Chief Exectutive Officer. Pesicka was a former executive at Thermo Fisher Scientific. He will also join the company's Board of Directors.

Business transition

In the 4th quarter of 2017, Owens & Minor opened a second office to host the new Customer Engagement Center (CEC) in downtown Richmond, Virginia as part of a business rebranding strategy. Virginia Governor Terry McAuliffe said, "This announcement is an outstanding example of our continuing work building a new Virginia economy."[16] The corporation will also continue to work out of its various offices across the United States.[16]

Movianto

In 2018 the company’s Movianto subsidiary won the contract to warehouse and distribute the UK government’s stock of emergency personal protection equipment, previously managed by DHL. The contract was estimated at £10.5m a year.

Following a dispute over payment of rent, Movianto gained a UK High Court injunction in March 2019 to stop Industrial North West LLP, the owner of the industrial estate, from locking the gates and thereby stopping Movianto’s employees from transferring stock.[17]

In 2020 Movianto was criticised after allegedly causing delays to the distribution of the UK government’s stockpile of personal protective equipment (PPE). Following news of shortages in hospitals, the British army was sent to Movianto’s warehouse to deploy the PPE.

An investigation also established that Movianto had previously stored the equipment in a smoke-damaged warehouse that was found to contain asbestos.[18]

On 6 April 2020, during the coronavirus pandemic, Owens & Minor sold Movianto to the EHDH Holding Group for $133m, with the sale due to be completed by the end of June. According to the Guardian newspaper, Movianto had lost money for eight years before winning the government contract, and had lost several big contracts.[19]

References
  1. "Owens & Minor Inc. (OMI) Soars 2.54% on June 16". Equities News. Retrieved June 26, 2020.
  2. "Owens & Minor completes Movianto sale". MassDevice. June 19, 2020. Retrieved June 26, 2020.
  3. "OMI Stock Price, Forecast & News (Owens & Minor)". www.marketbeat.com. Retrieved June 26, 2020.
  4. "US SEC: Form 8-K, Departure of P. Cody Phipps and Appointment of Robert C. Sledd as interim President, CEO, & Chairman of the Board". U.S. Securities and Exchange Commission. November 8, 2018. Retrieved December 13, 2018.
  5. "US SEC: Form 8-K, Appointment of Robert K. Snead as Executive Vice-President & CFO". U.S. Securities and Exchange Commission. December 8, 2018. Retrieved December 13, 2018.
  6. "US SEC: Annual Form 10-K (2017), Owens & Minor, Inc". U.S. Securities and Exchange Commission. February 23, 2018. Retrieved December 13, 2018.
  7. "Owens & Minor Earnings Report" (PDF). Shareholder.
  8. "Investor Relations". Owens & Minor, Inc. Retrieved March 15, 2019.
  9. "Owens & Minor Inc. (OMI) Soars 2.54% on June 16". Equities News. Retrieved June 26, 2020.
  10. "Owens & Minor completes Movianto sale". MassDevice. June 19, 2020. Retrieved June 26, 2020.
  11. https://www.owens-minor.com/were-owens--minor/legacy
  12. http://www.wikinvest.com/wiki/Owens_%26_Minor_(OMI)
  13. http://investors.owens-minor.com/releasedetail.cfm?releaseid=703789
  14. http://investors.owens-minor.com/releasedetail.cfm?releaseid=872035
  15. "Owens & Minor Completes Acquisition of Halyard Health's Surgical & Infection Prevention (S&IP) Business". Owens & Minor, Inc. Retrieved March 15, 2019.
  16. http://investors.owens-minor.com/releasedetail.cfm?releaseid=1012340
  17. "Revealed: Private firm running UK PPE stockpile was sold in middle of pandemic". The Guardian. April 22, 2020. Retrieved May 15, 2020.
  18. "Revealed: Insiders voice their concerns about management of PPE stockpile". ITV News. May 14, 2020. Retrieved May 15, 2020.
  19. "Drivers tell of chaos at UK's privately run PPE stockpile". The Guardian. May 14, 2020. Retrieved May 15, 2020.
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