Moody's: Owens & Minor's purchase is positive

Moody's Investors Service said that Owens & Minor, Inc.'s July 24 announcement that it entered into a definitive agreement to acquire the majority of the Movianto Group from Celesio AG for about $160 million of cash is credit positive.

Moody's said the acquisition is credit positive because it increases the size and scale of Owens & Minor's third party logistics segment and allows for global distribution growth over the longer-term with a relatively modest cash investment.

The acquisition does not affect the ratings because the cash transaction is small compared to Owens & Minor's financial position including revenue of roughly $8.7 billion and Moody's adjusted EBITDA of roughly $300 million, as of the 12 months ended March 31.

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