Under the agreement, Halyard Health, spun off from Kimberly-Clark Corp. in 2014, will transfer ownership of the S&IP business including the Hayard Health brand and company’s current IT platform.
The acquisition is expected to add $1 billion in revenue and $80 million in annual operating profits, according to the Richmond Times Dispatch.
The deal, subject to regulatory approval, is expected to close in 2018.
“This is a significant step that will strengthen and diversify our business model with a market-leading portfolio of surgical and infection prevention products,” Owens & Minor Chairman, President and CEO P. Cody Phipps, told the Richmond Times Dispatch.
The acquisition comes as Owens & Minor attempts to offset weakened financial results caused by pricing pressures in the healthcare supply industry and a loss of a large contract with Oakland, Calif.-based Kaiser Permanente’s insurance arm.
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