US healthcare firm McKesson buys PSS World Medical for $2.1 bn
26 Oct 2012
Continuing its acquisition spree, US pharmaceutical distributor and healthcare information technology company McKesson Corp has agreed to acquire PSS World Medical Inc for approximately $2.1 billion, widening the scope of its supplies and services to medical professionals.
Under the terms of the offer, McKesson will give $29 in cash for each share of PSS World Medical representing a 34-per cent premium on the company's closing price on Wednesday. The deal is valued at approximately $2.1 billion including PSS World Medical's outstanding debt, the companies said in a joint statement.
Further to announcement of the deal, shares in PSS World Medical jumped 32 per cent to end at $28.57 yesterday on Nasdaq.
''The combination of McKesson's medical surgical business and PSS World Medical is an exciting next step in McKesson's commitment to improve business health and clinical performance across healthcare,'' said McKesson's chief executive John Hammergren.
Jacksonville, Florida-based PSS World Medical markets and distributes medical products and services to front-line caregivers throughout the US with its 4,000-strong workforce, occupying a leading position in the markets it serves.
The company reported sales of $2.1 billion and net income of $74 million for the year ended March 2012.