Why Halyard Health Is Rallying Higher Today
After reporting its third-quarter financials and announcing the sale of its surgical and infection prevention business to Owens & Minor (NYSE: OMI), shares in Halyard Health (NYSE: HYH) increased by more than 10% earlier today.
Halyard Health is selling its S&IP business to Owens & Minor for $710 million. The deal accelerates its transition toward being solely focused on medical devices and pain management.
The move should bolster Halyard Health's profitability because the S&IP business offers lower margins than its medical device business. Once the transaction has been digested, Halyard Health should be able to get back to revenue growth because the medical device and pain business is growing more quickly than the S&IP business, too.
Source: Fool.com
