Owens & Minor will pay $30.2 million for the net assets of The Burrows Company and will assume the company’s debt. The final purchase price will be subject to certain post-closing adjustments.
The transaction is expected to close in the fall of 2008, pending regulatory approvals. Immediately following the close of the transaction, Owens & Minor will launch a conversion process designed to transition The Burrows Company customers to Owens & Minor’s systems by the end of the second quarter of 2009.
Craig Smith, president and CEO of Owens & Minor, said: “The acquisition of The Burrows Company, a large regional distributor with more than 75 years of experience in the acute-care market, is a strong geographic fit for Owens & Minor. Based on the success of our most recent acquisition, we are preparing a conversion plan that will provide customers with an orderly transition.
“Once the transition is concluded, we expect to leverage the revenue base and introduce these customers to the benefit of our value-added programs and services, as well as our supply-chain management expertise.”