Scientific supplies distributor Fisher Scientific International of Hampton, NH, is buying medical products distributor PSS World Medical of Jacksonville, FL, the companies reported today. The deal comes as PSS World reported year-end financial results that highlight the financial troubles the company has encountered recently.
According to the terms of the all-stock deal, PSS World shareholders will receive 0.3121 shares of Fisher Scientific stock for each share of PSS stock they own. The deal is expected to close in the fourth quarter.
PSS World grew rapidly through acquisition in the 1990s, but encountered turbulence recently, and the company put itself up for sale in January. Among its problems were bankruptcies among its clients in the long-term care industry and product recalls by several of its suppliers. The company operates in the medical imaging market through its Diagnostic Imaging subsidiary.
PSS World's problems were highlighted in its financial results for fiscal 2000 (end-March 31). The company reported sales of $1.79 billion, up 14.6% compared with $1.56 billion in fiscal 1999. The company's net income plummeted, however, to $28 million, compared with $53.8 million in the previous year.
By AuntMinnie.com staff writers
June 22, 2000
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