Mutually beneficial deals may not be all that common in the med-tech world, but I think Owens & Minor's (OMI) acquisition of Medical Action Industries (MDCI) fits the bill. I was bullish on Medical Action Industries back in December
and even though Owens & Minor is paying well above my fair value
estimate, Owens & Minor has what I think is unique cost leverage in
this deal to justify the price. The added value from this deal does push
up my fair value estimate for Owens & Minor above today's price,
but I'm still not exceptionally bullish given the harsh realities of the
medical distribution industry.
Continue reading here:
Owens & Minor And Medical Action Industries Find A Win-Win
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