San Francisco-based McKesson said it expects the deal to "realize annual pre-tax synergies in excess of $100 million," according to a press release.
"The combination of McKesson’s Medical Surgical business and PSS World Medical is an exciting next step in McKesson’s commitment to improve business health and clinical performance across healthcare," chairman &CEO John H. Hammergren said in prepared remarks. "The unified organization will bring extensive distribution capabilities, deep product and technology expertise and a broad portfolio of business services to an expanding industry, helping our customers improve efficiency and productivity, and deliver better care."
McKesson said it plans to integrate PSS into its distribution solutions segment, with PSS president & CEO Gary Corless becoming COO of the combined business.
That news, plus Wall Street-beating fiscal 2nd quarter results, sent MCK shares up nearly 4.1% to $93.16 apiece as of the closing bell today.
McKesson reported its fiscal 2nd quarter results, posting profits of $401 million, or $1.67 per share, on sales of $29.85 billion for the 3 months ended Sept. 30. That’s a profit increase of 35.5%, despite a 1.2% top-line dip.
Adjusted to exclude 1-time items, earnings per share reached $1.92, well ahead of the $1.77 consensus on The Street.
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