McKesson and PSS World Medical have signed a definitive agreement under which McKesson will acquire all outstanding shares of PSS World Medical for $29 per share in cash.
PSS World Medical, based in Jacksonville, Fla., and McKesson’s medical surgical business will combine and provide medical supplies, services and technology to physician and extended care customers, according to a McKesson press release.
The total transaction, including the assumption of PSS World Medical’s outstanding debt, is valued at approximately $2.1 billion. The transaction, which has been approved by the boards of directors of both companies, is subject to customary closing conditions, including all necessary regulatory clearances and the approval of PSS World Medical’s shareholders. By the fourth year following the close of the transaction, Atlanta-based McKesson expects to realize annual pre-tax synergies in excess of $100 million.
McKesson plans to utilize each organization’s distribution infrastructure, private label offerings and sales and customer service teams.
Following the close of the transaction, the combined business will be reported as part of McKesson’s distribution solutions segment, reporting to Paul Julian, executive vice president and group president, McKesson.