Distributor Diagnostic Imaging sold to L.A. equity firm

Nov 3, 2002

Jacksonville, FL-based PSS World Medical agreed to sell its wholly owned imaging subsidiary, Diagnostic Imaging, to Platinum Equity of Los Angeles, for $45 million in cash and the assumption of $71 million in liabilities.

Diagnostic Imaging, also based in Jacksonville, FL, distributes and services medical diagnostic imaging equipment, supplies, and chemicals for hospitals, imaging centers, physicians, and other healthcare professionals. For the fiscal year ended March 29, 2002, the imaging business division had net sales of approximately $712 million and a loss from operations of $2.4 million.

The sale reflects a strategic decision by PSS World Medical management to focus on its private physician and long-term care businesses. Proceeds of the transaction will be used to reduce debt, according to the company.

Until the sale is final, PSS World Medical will continue to operate Diagnostic Imaging from Jacksonville under its president, Joseph Pepper. Pepper will remain with the new company, which will become a wholly owned subsidiary of Platinum Equity, a private buyout firm specializing in the acquisition and strategic management of technology companies.

Since its founding in 1995, Platinum has completed more than 40 privately funded transactions, including a recent agreement to acquire the Health Care Products division of Royal Philips Electronics. The division has been operated by Philips Medical Systems of Andover, MA.

Platinum senior vice president Mark Barnhill said the transactions signify Platinum’s commitment to the imaging market and a belief in the opportunities that exist in the industry. The new privately held imaging company will have 1,600 employees.

Barnhill estimates that the Philips deal will be completed within 30 days, and that the Diagnostic Imaging transaction will close by the end of the year.

By AuntMinnie.com staff writers
November 4, 2002

Heartlab, Diagnostic Imaging team up, September 23, 2002

MagneVu, Diagnostic Imaging ink distribution deal, September 18, 2002

Konica, Diagnostic Imaging expand deal, August 12, 2002