Start Shopping

Owens and Minor to Acquire Byram Healthcare

 Owens and Minor to Acquire Byram Healthcare

 

On May 2, 2017, Owens and Minor announced that it had signed a purchase agreement to acquire Byram Healthcare for $380M. As a prominent supplier to hospitals (the largest supplier that does not also distribute pharmaceuticals), Owens and Minor appears to have identified its next growth opportunity. With margins continuing to compress in the acute care market along with relatively flat hospital market growth, Owens and Minor made the decision to expand its presence into the home care space.

Byram Healthcare has grown from a relatively small Connecticut based drop ship supplier into a national player through both acquisitions and organic growth. Byram’s $450M in annual revenue will make a solid contribution to Owens and Minor’s sales growth goals.

In the press release, Owens and Minor CEO P. Cody Phipps said that, “With the addition of Byram to the Owens & Minor family, we can quickly advance our strategic agenda with providers and manufacturers by expanding our reach beyond the hospital setting all the way to the patient's home. Byram's expertise in managing third party reimbursement and working with insurers and federal health care programs brings an important new capability to Owens & Minor."

The Owens and Minor purchase of Byram is not unlike Cardinal Health’s acquisition of AssuraMed in 2013. In buying AssuraMed (which included Independence Medical and EdgePark Surgical), Cardinal Health gained homecare distribution businesses as well as payor contracts. Similarly, Owens and Minor’s acquisition of Byram Healthcare will take the company into new territory, dealing with payors through Byram’s portfolio of health insurance contracts and direct to patient fulfillment model.

 

Owens and Minor Press Release: http://investors.owens-minor.com/releasedetail.cfm?ReleaseID=1024129