Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Owens & Minor And Medical Action Industries Find A Win-Win

Mutually beneficial deals may not be all that common in the med-tech world, but I think Owens & Minor's (NYSE:OMI) acquisition of Medical Action Industries (NASDAQ: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.

A Fond Farewell

I'm a little sorry to see...

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