Owens & Minor to reach target leverage range in two years, CEO says

By Devika Patel

Knoxville, Tenn., May 24 – Owens & Minor, Inc. plans to hit its target leverage range of 2x to 2.5x within two years, as it is generating good free cash flow and using it to pay down debt.

“Our cash flow is growing,” president and chief executive officer Ed Pesicka said at the UBS Global Healthcare Conference on Monday.

“That free cash flow has enabled us to pay down debt, enabled us to execute acquisitions and enabled us to invest in organic growth and our business.

“We expect this year alone to generate roughly $400 million of free cash flow.

“That is important because it enables us to pay down our debts.

“It’s going to enable us to hit the long-term targets within 18 to 24 months, to get our debt back within the 2x to 3x.

“We’ll focus on paying our debts down,” he said.

Owens & Minor is a Richmond, Va.-based health care technology company.

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