JACKSONVILLE, Fla.--(BUSINESS WIRE)--PSS World Medical, Inc. (NASDAQ GS: PSSI) announced today that it has entered into a definitive agreement to acquire 100% of the outstanding stock of Activus Healthcare Solutions, Inc. (“Activus”). Activus is a California-based distributor of medical supplies to office-based physicians and ambulatory surgery centers in California, Oregon, Nevada, and Arizona. Activus generates $22 million in annual revenue and adds 14 sales representatives with an average tenure of over 19 years in fast-growing markets.
David A. Smith, Chairman and Chief Executive Officer of PSS World Medical, Inc, commented, “We are excited about this very strategic acquisition for our Physician Business’ western markets. After Activus was formed by assembling a sales team from many of the leading physician distributors, they rapidly achieved a strong presence in these important, fast-growing markets. Our business in California is experiencing strong growth. The Activus sales team will accelerate our expansion, while they will benefit from a broader product offering, superior marketing programs and exclusive agreements with our supplier partners.”
All current Activus operations will be consolidated into the Company’s facilities in Phoenix, AZ, Fullerton, CA, and Sacramento, CA. The acquisition is expected to reduce the Company’s earnings per share by approximately $0.01 in fiscal year 2008 due to transition and integration costs, but will be accretive to earnings within 12 months. Terms of the transaction were not disclosed.
PSS World Medical, Inc. is a national distributor of medical products to physicians and elder care providers through its two business units. Since its inception in 1983, PSS has become a leader in the two market segments that it serves with a focused market approach to customer services, a consultative sales force, strategic acquisitions, strong arrangements with product manufacturers and a unique culture of performance.
All statements in this release that are not historical facts, including, but not limited to, statements regarding anticipated growth in revenue, gross and operating margins, and earnings, statements regarding the Company’s current business strategy, the Company’s ability to complete and integrate acquired businesses and generate acceptable rates of return, the Company’s projected sources and uses of cash, and the Company’s plans for future development and operations, are based upon current expectations. Specifically, forward-looking statements in this Press Release include, without limitation, the Company’s expected results in GAAP EPS, revenue, operating incomes and operating margins for continuing operations for both the consolidated company and for each of its businesses in fiscal years 2007 - 2009; the expected operational cash flow in fiscal years 2007- 2009; the ability to sustain revenue growth and expected growth rates of the marketing programs in its Physician and Elder Care Businesses; expected flu vaccine sales and profitability during fiscal year 2007, the Company’s decision to not participate in the sale of flu vaccine in fiscal year 2008; expected pharmaceutical product sales in Florida and all other of the 50 U.S. states in fiscal years 2007- 2009; expected sales growth from revenues derived from home care, hospice and assisted living customer, expected efficiency, customer acceptance and profitability derived from the Company’s global product sourcing strategy, expected revenue, income and profitability derived from the Company’s strategy to invest and participate in the marketing and sales of healthcare information technology products and services (HCIT), the expectation for acquired assets to meet performance, integration, revenue and profitability assumptions and targets, as well as other expectations of growth and financial and operational performance. These statements are forward -looking in nature and involve a number of risks and uncertainties. Actual results may differ materially. Among the factors that could cause results to differ materially are the following: pricing and customer credit quality pressures; the loss of any of our distributorship agreements and our reliance on relationships with our suppliers and vendors; our reliance on a limited number of chain business elder care customers; the availability of sufficient capital to finance the Company’s business plans on terms satisfactory to the Company; lower revenue and earnings that may result from competition; the ability of the Company to adequately defend or reach a settlement on outstanding litigation matters and investigations involving the Company or its management; changes in labor, equipment and capital costs; changes in legislation and regulations affecting the Company’s business, such as the Medicare cliffs, changes in malpractice insurance rates and tort reform; future acquisitions or strategic partnerships; general business, competitive and economic factors and conditions; and other factors described from time to time in the Company’s reports filed with the Securities and Exchange Commission. Many of these factors are outside the control of the Company. The Company wishes to caution readers not to place undue reliance on any such forward -looking statements, which statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. The Company also wishes to caution readers that it undertakes no duty or is under no obligation to update or revise any forward-looking statements.
(NASDAQ GS:PSSI) - G
Contact: PSS World Medical, Inc. Robert C. Weiner Vice President, Investor Relations 904-332-3287
Source: PSS World Medical, Inc.
