PSS World Medical's Long-term Care Business Acquires Advantage Medical Products, LLC.
JACKSONVILLE, Fla.--(BUSINESS WIRE)--Sept. 26, 2002
PSS World Medical, Inc. (Nasdaq/NM:PSSI) announced today that its Long-term Care business, Gulf South Medical Supply (GSMS), has acquired Advantage Medical Products, LLC, a medical supplies and equipment distributor to the Long-term care industry, based in Louisiana. Terms of the transaction are confidential.
Gulf South Medical Supply plans to retain Advantages' existing sales representatives and consolidate its operations into two existing Gulf South facilities to serve customers predominantly located in Louisiana, and in Mississippi and eastern Texas. Gulf South has entered into long-term distribution supply agreements with customers representing approximately 50% of Advantage's existing base of revenues. The acquisition of Advantage Medical Products, LLC, which anticipates revenues of approximately $11 - 12 million over the next twelve months, enables Gulf South to improve services to these new customers by leveraging its newly built infrastructure in Louisiana, Mississippi and Texas.
"Advantage has an excellent reputation for quality service and superior customer satisfaction, which, we are confident will increase by joining the Gulf South organization. The acquisition of Advantage is an important step in continuing our strong growth trend by completing a strategic acquisition in a significant market where we have gained a leadership position. We are also excited to add these experienced sales representatives to our sales force to gain greater presence and expand our services in these markets," commented, Tony Oglesby, President of Gulf South Medical Supply.
"Gulf South achieved returns on committed capital in excess of 20% for the last several quarters, which is the minimum threshold established by PSS World Medical to evaluate and complete acquisitions. We expect this acquisition to be immediately accretive to Gulf South's performance in our current fiscal year 2003," concluded, Tim Gentz, Chief Operating Officer and Chief Financial Officer of Gulf South Medical Supply.
PSS World Medical, Inc. is a specialty marketer and distributor of medical products to physicians, long-term care providers and imaging consumers through its three business units to customers in all 50 states. Since its inception in 1983, PSS has become a leader in all three 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. The Company's Long-term Care business, Gulf South Medical Supply (GSMS), is a national distribution services company serving the medical products and equipment needs of the Long-term Care industry in the United States.
All statements in this release that are not historical facts, including, but not limited to, statements regarding anticipated growth in revenue, gross margins and earnings, statements regarding the Company's current business strategy, the Company's projected sources and uses of cash, and the Company's plans for future development and operations, are based upon current expectations. 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: the availability of sufficient capital to finance the Company's business plans on terms satisfactory to the Company; competitive factors; the ability of the Company to adequately defend or reach a settlement of outstanding litigations and investigations involving the Company or its management; changes in labor, equipment and capital costs; changes in regulations affecting the Company's business; future acquisitions or strategic partnerships; general business and economic 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.