PSS Medical Plans Buy

PSS World Medical (PSSI Quote) agreed to acquire Southern Anesthesia & Surgical of Columbia, S.C.

Terms weren't disclosed, but PSS said SAS distributes pharmaceuticals and medical supplies to office-based physicians and surgery centers in all 50 states. It generates annual revenue of $50 million. The acquisition is expected to close by Sept. 30 and will be financed from existing borrowing capacity.

"SAS represents an exciting strategic acquisition for our Physician Business," CEO David A. Smith said. "SAS' expertise in the distribution of controlled pharmaceuticals strengthens our industry-leading physician sales force and accelerates our penetration in this fast-growing segment. The addition of SAS' South Carolina facility and staff for the distribution of these products improves the service offering to our physician customers and will increase our overall competency and effectiveness in serving this market."

PSS shares rose 8 cents Wednesday to $13.03.