PSS World Medical – PSSI – Launches Strategic Transformation Plan

PSS World Medical, Inc. (Nasdaq:PSSI) announced that its Board of Directors has approved a strategic restructuring plan designed to transform the Company, focusing its efforts and investments on what it believes will be the fastest growing segments of non-acute, alternate site healthcare in the U.S. Specifically, the Company will focus on physician, laboratory, in-office dispensing, and the home care and hospice markets. The Company will seek to divest its skilled nursing business and a specialty dental business.

• Focused on four newly structured high-growth business verticals — Physician, Laboratory, In-Office Dispensing and Home Care & Hospice
• PSSI Will seek to divest two business units serving skilled nursing facilities and specialty dental practices
• PSSI Accelerates investment in selling and marketing resources to reach integrated health systems and community health centers
• Announces three acquisitions: two premier laboratory service companies and one physician office dispensing company, adding approximately $120 million of annual revenues

President and Chief Executive Officer, Gary A. Corless, commented, “As the U.S. healthcare system deals with unprecedented change and uncertainty, it is imperative that PSS be part of a solution, which we are referring to as Healthcare 2.0. The transformation we are undertaking will reposition us to better serve those front line caregivers, who improve patient outcomes through the delivery of high quality, cost effective care, in settings preferred by patients and payers. We will help our nation’s providers adapt to an increasingly complex and challenging environment by delivering on our purpose to strengthen the clinical success and financial health of caregivers by solving their biggest problems.

“This is a unique opportunity to transform our business at an accelerated pace to meet the changing needs of the healthcare market by leveraging our strengths, our position and our expertise while enhancing shareholder value. We must now increase our investment in key strategic businesses and narrow our focus to customers who can best benefit from our expertise and service model. By focusing on these four business verticals, we will better support caregivers’ efforts to detect, diagnose, and treat at the point of care in a convenient setting,” continued Corless.

David M. Bronson, Executive Vice President and Chief Financial Officer, commented, “The Company approaches this strategic transformation from a position of financial strength and flexibility. We are excited to announce definitive agreements to acquire three companies, InfoLab, ProLabs and Physician Partners, that are expected to be accretive in fiscal year 2013 and add annual revenues of approximately $120 million. An aggressive, focused acquisition strategy will continue to be a key part of the strategic transformation plan we are announcing.”

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.