Accendra Health, Inc. (formerly Owens & Minor, Inc.) — 2025 Annual Report: Key Developments and Investor Insights

Overview and Corporate Actions

Accendra Health, Inc., previously known as Owens & Minor, Inc., has released its Annual Report for the fiscal year ending December 31, 2025. This report contains significant developments that may impact shareholders and the company’s future share price.

Major Transaction: Sale of Products & Healthcare Services (P&HS) Business

• Divestiture: On October 7, 2025, Accendra Health entered into an Equity Purchase Agreement to sell its Products & Healthcare Services business to Dominion Healthcare Acquisition Corporation and Dominion Healthcare Holdings, L.P. for an aggregate of \$375 million in cash, subject to adjustments for cash, indebtedness, net working capital, and transaction expenses.
• Completion: The sale closed on December 31, 2025.
• Retained Interest: Accendra Health has retained a 5% equity interest in the P&HS business post-sale.
• Potential Share Price Impact: This transaction marks a strategic transformation for Accendra Health, with the divestiture potentially impacting future revenues, cash flows, and capital allocation. The sale proceeds provide liquidity and capital for new initiatives, but the loss of the P&HS segment may affect future earnings. Investors should monitor how the company reallocates these proceeds and whether it pursues further acquisitions, debt reduction, or shareholder returns.

Shareholder Information

• Public Float: As of June 30, 2025, the aggregate market value of common stock held by non-affiliates was \$677,542,557.
• Shares Outstanding: As of January 31, 2026, there were 76,436,813 shares of common stock outstanding.
• Listing: The company’s common stock (ACH) is listed on the New York Stock Exchange.
• SEC Status: Accendra Health is a well-known seasoned issuer and is not a shell company. It has complied with all SEC reporting requirements and submitted all required Interactive Data Files.

Corporate Governance and Compliance

• Accendra Health has filed management’s assessment and auditor attestation of internal controls over financial reporting under Sarbanes-Oxley Section 404(b).
• The report reflects the correction of an error in previously issued financial statements, but no restatements required a recovery analysis of incentive-based compensation.
• The company is not an emerging growth company and has not elected to use extended transition periods for new accounting standards.

Key Risks and Forward-Looking Statements

The report includes a comprehensive risk factor summary, with several operational and transaction-related risks that could materially affect share value:

• Operational Risks:
  • Concentration and dependence on certain payors.
  • Changes in customer and product mix affecting financial results.
  • Dependence on significant suppliers.
  • Talent attraction and retention challenges.
  • Integration risks from acquisitions.
  • Potential goodwill impairment requiring charges to earnings.
• Risks Related to Sale of P&HS Business:
  • The divestiture may negatively impact financial condition, results of operations, cash flows, capital resources, and liquidity.
• Industry and Economic Risks: Competitive and pricing pressures, retention and attraction of customers, legal/regulatory compliance, and global economic conditions.
• Debt Risks: Risks related to debt structure, interest rates, and liquidity.
• General Risks: Unforeseen risks not currently considered material.

Forward-Looking Statements: The company warns investors that forward-looking statements are based on reasonable assumptions but are subject to risks and uncertainties that could cause actual results to differ materially from projections.

Environmental and Regulatory Compliance

• The company states it is in substantial compliance with all applicable environmental laws and regulations, but notes increasing stringency and potential for material adverse effects if non-compliance or new regulations occur.
• Federal and state governments are considering new laws to address climate change, which may impose further operational and reporting burdens on Accendra Health. This includes California SB-253 (Climate Corporate Data Accountability Act) and SB-261 (Climate-Related Financial Risk Act).

Human Capital and Governance

• Management regularly reports to the Board’s People & Culture Committee on talent management, development, compensation, and succession planning.
• The company conducts engagement surveys and maintains oversight of talent retention and development.
• A written Code of Honor applies to all directors, officers, and teammates, available on the company website.

Investor Relations and Disclosure

• Accendra Health files annual, quarterly, and proxy reports with the SEC, available free of charge on its Investor Relations website and at www.sec.gov.
• The company uses its Investor Relations site, press releases, conference calls, webcasts, social media, and blogs to communicate material information. Investors are encouraged to monitor these channels for updates.
• The proxy statement for the annual meeting scheduled for May 14, 2026, is incorporated by reference for certain items in the report.

Conclusion: Price Sensitive Highlights

• The completed sale of the P&HS business is a transformative event and may significantly impact the company’s future direction, earnings, and share value. Investors should closely monitor how Accendra Health deploys the sale proceeds and manages its retained interest.
• Correction of an error in previously issued financial statements may raise questions about historical accuracy and internal controls, though no executive compensation clawback was triggered.
• Ongoing compliance with environmental laws and anticipated climate-related regulations may affect operations and costs.
• The concentration of customers, suppliers, and payors, along with integration and talent risks, remain key focus areas for investors.

Disclaimer: This article is an interpretive summary and analysis of Accendra Health, Inc.’s 2025 Annual Report for informational purposes only. It is not intended as financial advice or a recommendation to buy or sell securities. Investors should conduct their own due diligence and consult with professional advisors before making any investment decisions. The information presented is based on public filings and may be subject to change.

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