Health care services company McKesson Corp. plans to expand its medical supply business through the proposed acquisition of PSS World Medical for $1.46 billion in cash. It is the latest in a series of major health care deals this year.
Simpson Thacher & Bartlett is advising San Francisco–based McKesson on the deal, reprising the role the firm played for the company in connection with McKesson’s 2006 acquisition of Atlanta-based health care management systems maker Per-Se Technologies for approximately $1.8 billion.
Alston & Bird advised PSS World Medical on the McKesson deal, which is still subject to routine closing conditions. According to Reuters, PSS—which helps outfit stand-alone physician offices, labs and elder care facilities with various supplies—was nearly sold for $840 million in 2000 to Fisher Scientific, now a part of Thermo Fisher Scientific, but the deal fell through.
The Alston deal team, working with PSS general counsel Joshua DeRienzis, is led by the firm’s Washington, D.C.–based corporate head David Brown Jr. and Atlanta-based health care partner Steven Pottle. The team also includes health care M&A partner Sarah Ernst in Atlanta; health care and FDA regulatory partners Dawnmarie Matlock in Atlanta and Marc Scheineson in Washington; benefits partners John Shannon and Blake MacKay in Atlanta; and Atlanta antitrust counsel Valarie Williams. Holland & Knight partner Leighton Yates Jr. in Orlando served as local counsel to PSS.
Brown says Alston first began working with PSS in the early 1990s and since has helped the company increase its national profile through a series of acquisitions. Alston has also advised on a range of other assignments for PSS, Brown says, including Securities and Exchange Commission reporting, financial transactions, regulatory advice, and the occasional litigation matter.