McKesson to acquire PSS World Medical for $2.1 billion

SAN FRANCISCO — McKesson and PSS World Medical on Thursday announced that the two companies have signed a definitive agreement under which McKesson will acquire all outstanding shares of PSS World Medical for $29 per share in cash in a deal valued at $2.1 billion. 

PSS World Medical and McKesson’s Medical Surgical business will combine to form one of the leading providers of medical supplies, services and technology to physicians and extended care customers. With the combined entity, customers will have access to a broader array of medical products and services, coupled with the additional convenience and efficiency of working with a single delivery organization.

“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 health care,” stated John Hammergren, McKesson chairman and CEO. “The unified organization will bring extensive distribution capabilities, deep product and technology expertise and a broad portfolio of business services to an expanding industry, helping our customers improve efficiency and productivity and deliver better care.”

The transaction is subject to customary closing conditions, including all necessary regulatory clearances and the approval of PSS World Medical’s shareholders.  

Following the close of the transaction, the combined business will be reported as part of McKesson’s Distribution Solutions segment, reporting to Paul Julian, McKesson EVP and group president. Upon the close of the transaction, Gary Corless, president and CEO of PSS World Medical, will become COO of the combined organization.