Owens & Minor’s Asset Sale: Potential Risks and Financial Implications

Owens & Minor (OMI) has disclosed a new risk, in the Corporate Activity and Growth category.

Owens & Minor faces significant business risks with the contemplated sale of certain assets in its P&HS segment, which could adversely affect its financial stability. The company may encounter substantial retained liabilities from divested businesses and sold assets, along with obligations to indemnify buyers against contingent liabilities. These factors, combined with potential disputes with buyers, could negatively impact Owens & Minor’s financial position, operations, and cash flows. Additionally, the divestiture could lead to a dilutive impact on future earnings if the company fails to offset the loss of revenue and profits, potentially resulting in significant write-offs and adversely affecting its financial condition.

Overall, Wall Street has a Hold consensus rating on OMI stock based on 2 Buys, 2 Sells and 2 Holds.

To learn more about Owens & Minor’s risk factors, click here.