News Summary: McKesson buying PSS World for $1.46B
THE BUY: Prescription drug distributor McKesson Corp. said Thursday it will buy PSS World Medical Inc., a medical supply distributor, for $1.46 billion, or $34 per share.
THE PRICE: McKesson valued the deal at $2.1 billion including debt. It is offering a premium of 34 percent to the latest closing price of PSS World shares.
THE COMBINATION: PSS World had $2.1 billion in revenue in its latest fiscal year, and it will become part of McKesson's medical-surgical business, which has about $3.15 billion in annual revenue. McKesson gets the vast majority of its revenue from wholesale prescription drug sales.