News & PR Type: Press Release

Owens & Minor, Inc. today marks the 140^th year of its official founding, which occurred on Jan. 18, 1882, in downtown Richmond, Va. Now a Fortune 500 company with more than 15,000 teammates around the world, the company has navigated periods of growth and strategic progress while forging lasting partnerships with the customers, communities, and teammates that have fueled its success.

“Today we celebrate all that Owens & Minor has accomplished over the past fourteen decades, while also taking stock in our recent achievements during the ongoing global pandemic and the evolving demands of the healthcare industry,” said Edward A. Pesicka, President and CEO of Owens & Minor. “At the same time, we are always looking ahead to how we can better serve our customers amidst today’s changing landscape of the healthcare industry.”

Founded by Otho O. Owens and George Gilmer Minor, II as a pharmaceutical wholesale and retail company, the Owens & Minor Drug Company operated on Main Street in downtown Richmond. Despite a heavily competitive industry, the company attracted financing from local partners and set its sights on the untapped market share of rural and small-town pharmacists who needed supplies.

Navigating change in both the national economy and the industry, Owens & Minor first entered the medical and surgical supply business in 1966. In less than 40 years, the company grew from a regional company with revenue of $5 million to a national corporation with revenue over $1 billion, and over the same period, transitioned from a drug wholesaler to a hospital supplier and third-party logistics firm.

In recent years, Owens & Minor has expanded its offerings and business standing through strategic acquisitions and customer growth. In 2017, Owens & Minor entered a new healthcare space by acquiring Byram Healthcare, a leading patient direct business that supplies medical products to at-home patients. The following year, Owens & Minor became a vertically-integrated healthcare product manufacturer with a predominantly Americas-based footprint in its acquisition of Halyard Healthcare, a global provider of medical supplies and solutions for surgical and infection prevention, with products ranging from surgical drapes and gowns to facial protection, including N95 masks. In the last two months alone, Owens & Minor acquired American Contracting Systems, which specializes in the kitting and sterilization of Custom Procedure Trays (CPTs), followed by last week’s announcement of a definitive agreement to acquire Apria, Inc. at an equity value of $1.45 billion. Indianapolis-based Apria provides integrated home healthcare equipment and related services for chronic and non-chronic conditions, including a portfolio of products that complements the Byram Healthcare product offering. The acquisition of Apria is subject to customary regulatory approvals, including under the Hart Scott Rodnio Act, and is expected to close in the first half of 2022.

A company co-founded and led by four generations of Minor family members, it was George Gilmer Minor, III, fifth by generation, who spearheaded a trajectory of growth, while cultivating a team-driven atmosphere that moved Owens & Minor quickly forward. Gil Minor, III joined the family business at age 15 before taking a more influential role after graduation from college and business school. He became the division manager of O&M’s wholesale drug division, general manager of its three drug divisions, and was then named Vice President of Operations. Always an astute listener, he met with teammates and formulated their feedback into plans for the future. His leadership pioneered many new concepts, including costing methods, stockless services, and many other innovations. In 1984, the Board elected him President and CEO, and he became the fourth Minor family member to lead the company. Under his direction, Owens & Minor exceeded its goal of becoming a billion-dollar company when it recorded $1.2 billion in sales in 1992. His lasting legacy has endured long after his retirement in 2005.

“Ed Pesicka has done an excellent job of blending the values of the past with the opportunities of the future. I believe our integrity as a company will continue,” said Gil Minor III, Chairman Emeritus of Owens & Minor.

Pesicka took the helm of Owens & Minor in March 2019, just one year before the COVID-19 pandemic increased demand of infection prevention products, tested the limits of the supply chain, and stretched the endurance of the clinicians who require those critical supplies. Under Pesicka’s leadership, the company continues to focus on growing its innovative service offering and providing an unmatched customer experience.

“Owens & Minor teammates have a distinct drive and determination to provide our customers with the critical information and supplies they need as they provide patient care,” said Pesicka. “This team, which includes tenures from four days to 40-plus years, is deeply committed to delivering on our Mission of Empowering Our Customers to Advance Healthcare, a legacy that we are proud to serve today and long into the future.”

Today, it was announced that Rita Johnson-Mills and Terri Kline have been elected to the Owens & Minor Board of Directors, effective June 1, 2022.

“Rita and Terri each have deep healthcare expertise, and we look forward to the new perspectives they will be able to offer,” said Mark A. Beck, Chair of the Board. “Rita’s leadership across different healthcare sectors and Terri’s experience in home healthcare will enhance the Board’s diversity of thought and help sustain Owens & Minor’s success over the long-term.”

An established senior executive and business leader with more than 25 years of experience in both the public and private healthcare sectors, Johnson-Mills, 63, has been recognized for her success in driving profitable, sustainable growth. She has also implemented programs to improve employee engagement and build strategic relationships throughout her career. Most recently, Johnson-Mills served as Chief Executive Officer of Qualified Opportunity Zone Fund Nightingale Partners, leading its mission to address the social determinants of health. This follows nearly two decades in senior leadership roles at organizations including the Centers for Medicare & Medicaid Services and two publicly traded health plan enterprises, UnitedHealthcare and Centene Corp. Currently, Johnson-Mills serves on two public company boards, Brookdale Senior Living, Inc. and Nyxoah S.A.

Kline, 63, brings more than 25 years of leadership experience garnered from her work in a wide range of healthcare industry verticals. With a blend of payor and provider background, she has driven continuous growth, profitability and M&A transactions for both startups and publicly traded organizations, including insurance, managed care, physician practice management and outpatient facility management. Her most recent leadership role was as the President and Chief Executive Officer of Health Alliance Pan, a subsidiary of Henry Ford Health System in Michigan. Kline currently serves on the public company board of Amedisys, Inc. and multiple private company boards. Previously, Kline served on the board of directors of Apria, Inc., which was acquired by Owens & Minor in March 2022, and Intersect ENT, which was acquired by Medtronic, Inc. in May 2022.

“Rita and Terri are both veteran leaders with proven track records partnering with healthcare enterprises, making them invaluable advisors for Owens & Minor,” said Edward A. Pesicka, President and Chief Executive Officer, Owens & Minor. “Rita’s impressive background in the insurance sector and experience increasing access to care will offer indispensable guidance to our organization. Terri’s business acumen and knowledge of healthcare market dynamics will bolster our responsiveness to the ever-changing industry landscape, particularly home healthcare. We look forward to leveraging their unique skillsets to continue driving momentum in our business, supporting Owens & Minor’s Mission of Empowering Our Customers to Advance Healthcare.”

Today, we announced the appointment of Tammy Gomez as Executive Vice President & Chief Human Resources Officer, effective July 11, 2022. Gomez will report to Owens & Minor’s President and Chief Executive Officer, Edward A. Pesicka, and be a member of the company’s executive leadership team.

Gomez will assume leadership of Owens & Minor’s teammate strategy in addition to overseeing global human resources operations. She will work closely with leadership on driving strategies for retaining, developing, engaging and attracting the right talent to support overall growth and performance. Gomez will also be responsible for furthering Owens & Minor’s commitment to fostering an innovative, collaborative culture that aligns with core company values and progresses existing diversity and inclusion (D&I) initiatives.

“Our teammates are the backbone of Owens & Minor, and I’m confident that Tammy’s expertise will help us maintain a culture centered on our IDEAL values—integrity, development, excellence, accountability and listening—for our teammates and customers,” said Edward A. Pesicka, President and CEO, Owens & Minor. “We look forward to leveraging her insights and experience as we continue building on our strengths in this area of the organization.”

Gomez brings more than two decades of healthcare industry experience to Owens & Minor, having held leadership positions of increasing responsibility over the course of her career, most recently as SVP, Global Human Resources Centers of Excellence & Human Resources Services, and Solutions for Cardinal Health. In this role, she was responsible for compensation, benefits, talent acquisition, talent management, human resources operations, and analytics. Previously, Gomez held various human resources business partner roles supporting the company’s business and functional leaders. She began her career in finance, working with Prudential and General Motors.

“I’m honored to become an Owens & Minor teammate and to be part of a team that shares my passion for building strong teams that support overall company success,” said Tammy Gomez, EVP, and Chief Human Resources Officer, Owens & Minor. “I’m excited to continue building on the solid cultural foundation that this company is known for.”

Gomez is a graduate of the University of South Alabama and holds a Bachelor of Science in Business Management. She currently serves on the board of the Young Women’s Christian Association (YWCA) of Columbus, Ohio, and previously served on the board of trustees for Mental Health America (MHA) of Columbus, Ohio.

Today, Owens & Minor broke ground in Morgantown, West Virginia, on the future site of a center of excellence for medical supplies and logistics. Once construction is completed in late 2023, the 350,000 square foot center will be one of the state’s largest dedicated acute care medical distribution facilities and will include clinical supply capabilities for surgical kitting, custom procedure tray assembly and sterilization. Owens & Minor was joined for the groundbreaking by its local partner, West Virginia University Health System, which operates under the brand name WVU Medicine.

“We are excited for our partnership with Owens & Minor to take shape as we work to strengthen the resiliency of our healthcare system,” said Albert L. Wright, Jr., President and Chief Executive Officer, WVU Health System. “Our collaboration with Owens & Minor is instrumental in ensuring that we can deliver on that commitment for our clinicians and the communities we serve.”

The partnership, which represents an estimated $50 million investment in West Virginia and is anticipated to bring more than 100 jobs to the state, was first announced in December 2021. It was subsequently expanded in January 2022 to give the state of West Virginia the ability to rapidly leverage Owens & Minor’s logistics expertise and medical supply and distribution capabilities in response to future public health emergencies.

“Today’s groundbreaking represents the best of what West Virginia has to offer—our state’s largest health system and private employer working with an industry-leading Fortune 500 company to create a partnership that will have tangible impact for our state,” commented Gov. Jim Justice. “I applaud WVU Medicine and Owens & Minor and look forward to seeing even more of what this partnership brings to West Virginia.”

“Since day one, we’ve been inspired by the enthusiasm and passion both WVU Medicine and West Virginia have shown in making this center of excellence a reality,” said Edward A. Pesicka, President and Chief Executive Officer, Owens & Minor. “We’re eager to advance our collaboration and to put our 140-years of supply chain expertise to work in supporting one of West Virginia’s leading healthcare systems for years to come.”

The award recognizes Owens & Minor’s long-standing history of consistently supporting Premier network members. Owens & Minor leadership was in attendance at Premier’s annual Breakthrough Awards, June 21—23, to receive the award.

“We know the complexities faced by hospitals, health systems, and other providers as they strive to deliver excellent clinical care for their patients while also responsibly managing costs,” commented Edward A. Pesicka, President and CEO, Owens & Minor. “We’re proud to be recognized by Premier and its members for consistently and reliably supporting their efforts in attaining those goals. Through our product manufacturing and broad supply services, Owens & Minor remains laser-focused on supporting Premier and its members, like all Owens & Minor customers, as we fulfill our mission of Empowering Our Customers to Advance Healthcare. This award is dedicated with gratitude to our incredible teammates around the world that support our customers every day.”

This year marks the seventh that Owens & Minor has received the Premier Supplier Legacy Award. Owens & Minor was also previously recognized by Premier in 2021 with its COVID-19 Award for Most Supportive Supplier in recognition of the company’s rapid response during the earliest days of the pandemic, implementing robust safety protocols and ramping up Owens & Minor’s Americas-based PPE manufacturing to help maintain supply resiliency.

“Owens & Minor supports Premier members by offering valuable products and services that help to lower supply chain costs and improve operating efficiencies,” said David A. Hargraves, Senior Vice President, Supply Chain, Premier. “We’re honored to recognize them as a Legacy Award recipient.”

Mike Alkire, Premier President & CEO; Susan Czajkowski; John Crankshaw; Katie Acker; Matt Gattuso; Dave Myers; David Hargraves, Premier SVP of Supply Chain; and Andy Brailo, Premier Chief Customer Officer are pictured during the award presentation.

Carissa Rollins, Chief Information Officer (CIO) at Illumina, Inc., has been elected to its Board of Directors, effective July 12, 2022.

“Carissa’s experience driving strategy for global information systems and information technology for industry-leading healthcare companies brings a unique new perspective to the Board,” said Mark A. Beck, Chair of the Board, Owens & Minor. “Her track record of successfully leading and improving enterprise-level technology systems in complex business environments will be an invaluable asset.”

Rollins is currently CIO of Illumina, Inc., a global leader in DNA sequencing and array-based technologies, where she directs the company’s global information systems and information technology strategy. She has over three decades of enterprise technology experience and has held multiple executive leadership roles throughout the course of her career, including CIO at UnitedHealthcare, where she was responsible for technology strategy and investments supporting several business lines and stakeholder groups across the organization. In addition, during her time at UnitedHealthcare Rollins spearheaded the replacement of the company’s claims processing systems, the largest system development project in the company’s history. Prior, Rollins held executive and senior leadership positions at Gander Mountain Co., Kohl’s, Manpower Inc. and Miller Brewing Company (now Molson Coors Beverage Company).

“We look forward to having the benefit of Carissa’s strategic mindset and her strong technical skills on the Board of Owens & Minor,” said Edward A. Pesicka, President & CEO, Owens & Minor. “We’re confident that the combination of her ability to leverage relationships and her information systems acumen will be positive factors in Owens & Minor’s continued growth and success.”

Rollins currently serves as Chair of the Board of Directors for the YWCA of Minneapolis and is a member of the Grand Canyon Conservancy Board. She holds a B.S. in business administration and an MBA from Marquette University.

The company also announced that Mark F. McGettrick has stepped down from the Board, effective July 12, 2022. “On behalf of myself and the entire Board, we thank Mark for his years of service as an outstanding director and committee chair. We’re tremendously grateful for his insights and guidance over the past few years and appreciate his many valuable contributions to the success of Owens & Minor and the Board,” Beck commented further.