RICHMOND, Va. (AP) -- Owens & Minor Inc., a medical supply distributor, said Monday that it is buying Movianto Group for $158 million in a move to enter the European health care market.
Movianto provides services such as warehousing and transportation of medical supplies and is part of Celesio AG. It serves a global customer base from 23 logistics centers in 11 European countries.
The deal is expected to close by September and hurt earnings in the fiscal year through December partly because of transaction-related expenses. The company expects the business will be neutral to 2013 earnings per share and boost profit after that.
Owens & Minor announced the transaction at the same time as it reported that net income for the second quarter through June 30 rose 3 percent to $30.1 million, or 48 cents per share as it booked higher revenue and smaller selling, general and administrative costs.
Analysts polled by FactSet were looking for earnings of 49 cents per share.
Revenue rose 3 percent to $2.19 billion, which was also short of the $2.23 billion expected.
Owens & Minor shares fell 78 cents, or 2.7 percent, to $28.65 in after-hours trading following the earnings announcement. Shares closed the regular session down 82 cents, or 2.7 percent, at $29.43.
