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Healthcare solutions firm $OMI plans to organize into two units, named Global Solutions and Global Products. The move is in connection with the acquisition and integration of Halyard Health’s Surgical & Infection Prevention business. Global Solutions will contain most of Owens’ legacy business, while Global Products will contain its S&IP business.
$OHI said it has entered into a new $1.8Bil senior unsecured revolving and term loan credit facility, and an amended and restated $250MM senior unsecured term loan credit facility. $OMI also said its subsidiary OHI Healthcare Properties Limited Partnership entered into a new $100MM senior unsecured term loan credit facility.
$OMI agreed to buy Byram Healthcare, a subsidiary of Mediq B.V., for about $380MM in cash. The acquisition is expected to contribute about $450MM in incremental annual revenue for $OMI. The company expects that the transaction will have limited impact on 2017 earnings and will be modestly accretive in 2018. The deal will close in 3Q17.
$OMI outlined its new strategic plan and reaffirmed its adjusted EPS guidance of $1.75-1.85 for 2017 and $2.05-2.20 for 2018. As previously noted, these forecast reflect ongoing challenges within its Domestic business, including ongoing margin pressures resulting from changing market dynamics.
$OMI expects 2017 non-GAAP EPS of $1.75-1.85, based on ongoing challenges within Domestic business, including loss of a large Domestic customer, as well as ongoing margin pressures. For 2018, $OMI sees non-GAAP EPS of $2.05-2.20, based on initiatives in new strategic plan and associated investments.
$OMI reported a drop in 4Q16 earnings as exit of a large West Coast customer dragged revenue down. Net income fell to $27.11MM or $0.45 per share from $32.07MM or $0.51 per share last year. Revenue dropped to $2.37Bil from $2.49Bil. Non-GAAP EPS decreased to $0.52 from $0.56.
$OMI announced that Barbara B. Hill has been elected to its board of directors, effective February 9, 2017. Ms. Hill also serves as a member of the boards of directors of Omega Healthcare Investors, Inc. and Integra LifeSciences Holdings Corporation.
$OMI said it affirmed its adjusted EPS outlook for 2016 of $2.00-2.05. CEO Cody Phipps said that although disappointed in the customer's decision to make this transition, the company remains focused on achieving its long-term financial and operational performance goals.
Healthcare services company $OMI said it has appointed Rony C. Kordahi as EVP, North American Operations, effective April 4, 2016. He will report to President & CEO, P. Cody Phipps. Mr. Kordahi comes to $OMI from United Technologies Corporation (UTC) and he has also worked at Lennox International Inc.
$CAH, which competes with $MCK, $ABC, and $OMI, said its largest contributing segment Pharmaceutical reported a rise in 2Q16 revenue of 25% to $28.3Bil and segment profit rose 16%. Medical segment also reported a rise in revenue of 9% YoverY while segment profit fell 8% related to Cordis-related inventory fair value step-up.