In Vivo is part of the Business Intelligence Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By

UsernamePublicRestriction
UsernamePublicRestriction

Distribution Consolidation Continues

Executive Summary

When Fisher Scientific International agreed to buy PSS World Medical Inc. in an all-stock deal valued at roughly $840 million at the time of the announcement, PSS shareholders should have been content. After all, their company's stock was hovering at near-record lows in the wake of a disastrous year for PSS. But shareholders were cool, partly because they were unhappy with PSS' quarterly earnings report, announced the same day, partly because they didn't know Fisher, and partly because they were caught up in a web of arbitrage, which drove down the stocks of both companies 25%.Fisher, an international distributor of scientific supplies, sees PSS as a way to expand its customer and vendor bases and to take advantage of cross-channel opportunities. The companies don't have much product overlap, with PSS strong in alternate site markets and Fisher a force in research labs and acute care hospitals. Fisher is relatively unknown on Wall Street, because only 7% of its shares are publicly traded. And PSS, while reeling from a series of problems, has a healthy underlying business as the market leader in alternate site markets for hospital and lab supplies. Now, Fisher and PSS have to convince Wall Street that they mean business.
Advertisement

Topics

Related Companies

Related Deals

Advertisement
UsernamePublicRestriction

Register

IV001470

Ask The Analyst

Ask the Analyst is free for subscribers.  Submit your question and one of our analysts will be in touch.

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts

Cancel