Major health-care services and technology company McKesson (NYSE: MCK ) announced on Thursday that it plans to acquire PSS World Medical (Nasdaq: PSSI ) for $2.1 billion. PSS World Medical supplies medical products to front-line caregivers in the U.S.
Both company's boards of directors approved the buyout. However, regulatory clearance, and approval by PSS World Medical's shareholders, is still pending. Assuming these approvals go as planned, PSS World Medical will combine with McKesson's Medical Surgical unit. The combined company will roll up to McKesson's Distribution Solutions segment.
McKesson expects to achieve over $100 billion in annual pre-tax synergies by the fourth year following the transaction close. The company plans to retain both organizations' customer service and sales staff, distribution infrastructure, and private label offerings.
Stanton McComb will be president of the new organization. McComb currently serves as president of McKesson's Medical Surgical unit. Gary Corless, currently PSS World Medical's president and CEO, will become chief operating officer of the newly formed organization.