By Dean Seal

Owens & Minor narrowed its full-year guidance, notched a $310 goodwill impairment and said it plans to raise additional debt to finance its acquisition of Rotech Healthcare Holdings.

The Mechanicsville, Va., healthcare-logistics company on Monday said it is raising more debt while the capital markets are attractive, with a plan to close the Rotech deal in the first half of 2025.

"Having this additional facility at attractive interest rates gives us the ability to remain nimble in a dynamic market," said Chief Executive Edward Pesicka. The company said last July that it would buy medical-equipment maker Rotech for $1.36 billion in cash.

Owens & Minor simultaneously released preliminary results for the fourth quarter, showing a $310 million goodwill impairment that should contribute a $4 per-share loss.

The charge is primarily related to declines in the company's stock price and rising interest rates, Owens & Minor said.

For the fourth quarter, the company forecasts revenue at $2.67 billion to $2.7 billion. Analysts polled by FactSet had been expecting $2.73 billion.

The company is projecting a quarterly loss of $288 million to $311 million, or $3.73 to $4.03 a share. Stripping out one-time items, adjusted earnings are slated to hit 52 cents to 55 cents a share, in line with the 53 cents a share expected by analysts.

For the full year, Owens & Minor projects $10.67 billion to $10.7 billion in revenue, narrowed from its previous outlook for $10.6 billion to $10.8 billion.

The net loss for 2024 is expected to be $355 million to $378 million, or $4.63 to $4.92 a share. Adjusted earnings are expected to be $1.50 to $1.54 a share, narrowed from prior guidance for $1.45 to $1.55 a share.

Shares slid 1% to $14.09 in premarket trading.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

February 03, 2025 07:09 ET (12:09 GMT)

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