Owens & Minor Inc . (NYSE:OMI), a distributor of medical and surgical supplies, announced today an update to its executive leadership team. Jonathan A. Leon has been appointed as the interim Chief Financial Officer (CFO), effective last Thursday. Leon, 58, has been with Owens & Minor since 2017 and has served as the Senior Vice President, Corporate Treasurer.
His responsibilities included overseeing global treasury, corporate development, taxation, and investor relations. Prior to his tenure at Owens & Minor, Leon worked at the Brinks Company as Treasurer. In his new role, he will receive an additional one-time equity award worth $250,000.
Simultaneously, the company disclosed the departure of Alexander J. Bruni, who has resigned from his role as Executive Vice President & CFO at the company's request, also effective last Thursday. Bruni, who joined the company in April 2020 and has been the CFO since October 2022, will remain until September 5, 2024, to assist in the transition process before leaving to pursue other opportunities.
Under the terms of an executive transition and general release agreement, Bruni will receive severance payments including 1.5 times his current base salary plus the average bonus paid over the past three years, a lump-sum payment of $25,000 for health benefit premiums, and reimbursements for outplacement services and financial counseling services, subject to certain limits.
The company noted that there are no family relationships between Leon and any directors or executive officers, and he is not involved in any transaction that requires disclosure under SEC regulations.
The details of these executive changes will be included in the company's forthcoming Quarterly Report on Form 10-Q for the quarter ending June 30, 2024. The information reported is based on a press release statement.
In other recent news, Owens & Minor, a healthcare solutions company, has reported a 4% revenue increase in the first quarter of 2024, bringing total revenue to $2.6 billion. The company's Products & Healthcare Services (NASDAQ:HCSG) (P&HS) segment saw a 3% improvement, while the Patient Direct segment grew by 5%. Despite facing challenges like a cyber incident, Owens & Minor managed to achieve a gross profit of $536 million and expanded its gross margin.
Moreover, the company has appointed Snehashish Sarkar as its Executive Vice President and Chief Information Officer, a move that reflects the company's commitment to enhancing its technological capabilities.
Analyst firms Baird and BofA Securities have recently adjusted their outlook on Owens & Minor. Baird maintained a Neutral rating but reduced the stock's price target to $24, while BofA Securities retained an Underperform rating and cut the price target to $18.
These recent developments underscore Owens & Minor's strategic focus on growth and operational efficiency. The company is investing in its Patient Direct segment and P&HS segment, which are anticipated to improve margins and contribute to long-term profitable growth.
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