National Healthcare & Hospital Supply Agrees to Be Acquired in $40-Million Deal

National Healthcare & Hospital Supply in Orange agreed Tuesday to be acquired by Owens & Minor, a large eastern hospital supply distributor, in a deal worth about $40 million.

Officials of the companies said they were not prepared to discuss plans for the future of National Healthcare’s local operations or the status of the firm’s 360 employees, including 100 who work in Orange County.

“I do know there are some mighty fine people in this company, and a mighty fine computer system here,” said Owens & Minor President G. Gilmer Minor III.

National Healthcare, which said it had revenue of more than $250 million last year, supplies needles, syringes, catheters, gloves and other medical supplies to health-care hospitals and other health-care facilities, mostly in western states.

Publicly traded Owens & Minor in Richmond, Va., operates mostly in the Southeast, and had 1988 revenue of $731 million.

Until last year, National Healthcare was owned by Orange-based Bergen Brunswig Corp. In February, 1988, the New York investment group Morgans Waterfall, Vintiadis & Co. paid Bergen $40 million in cash for National Healthcare.

Chairman Polyvios Vintiadis said at the time of that acquisition that he intended to expand operations nationally through further acquisitions. However, the new owners, who kept Bergen managers and did not have experience in the medical business, made no major acquisitions.

“Rather than a sale, we view this as a coming together of two similar, but non-competing companies,” said National Healthcare Executive Vice President Michael T. West, who plans to remain with the merged operation.

West said Owens & Minor initiated the deal.

Minor said payment to National Healthcare will consist mostly of bonds, with smaller cash payments.