“NEW YORK (AP) — Prescription drug distributor McKesson Corp. is expanding its medical supplies business by buying PSS World Medical Inc. for about $1.46 billion.
McKesson said Thursday it will pay $29 per share for PSS World, a 34.3 percent premium over Wednesday’s closing price. PSS World shares finished at $21.60 Wednesday and advanced $7.09, or 32.8 percent, to $28.69 in premarket trading.
San Francisco-based McKesson values the deal at $2.1 billion including PSS World’s debt.
PSS World, of Jacksonville, Fla., had $2.1 billion in revenue in its latest fiscal year. It will become part of McKesson’s medical-surgical business. The deal requires the approval of PSS World shareholders.
McKesson expects $100 million in annual savings in the fourth year after closing.”
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