McKesson Corp., San Francisco, signed a definitive agreement to purchase supply company PSS World Medical for about $2.1 billion, including the assumption of outstanding debt.
McKesson would pay approximately $1.46 billion in cash—or $29 a share—for the outstanding shares of PSS World, a Jacksonville, Fla.-based distributor of medical supplies and equipment to office-based physicians and long-term-care providers.
PSS World would be combined with McKesson's existing medical surgical business and be part of McKesson's Distribution Solutions segment, reporting to Paul Julian, executive vice president and group president of McKesson, according to a news release.