<PAGE> 1
Filed by Fisher Scientific International
pursuant to Rule 425 under the Securities Act of 1933, as amended
Subject Company: PSS World Medical Inc.
================================================================================
[FISHER SCIENTIFIC INTERNATIONAL INC. LOGO]
THE WORLD LEADER SERVING SCIENCE
ACQUISITION OF PSS WORLD MEDICAL, INC.
JUNE, 2000
================================================================================
<PAGE> 2
ADDITIONAL INFORMATION IN SEC FILINGS
================================================================================
We urge investors and security holders to read the following documents when they
become available regarding the transaction described in this press release,
because they will contain important information:
* Fisher Scientific's joint proxy statement/prospectus, including any
preliminary and final proxy statement, registration statement on Form S-4,
any preliminary or final prospectus included in such registration
statement, and any proxy statement supplement and exchange offer material;
and
* PSS World Medical's preliminary proxy statement, final proxy statement and
any proxy statement supplement.
These documents and amendments to these documents have been or will be filed
with the SEC. When these and other documents are filed with the SEC, they may be
obtained for free at the SEC's Web site at www.sec.gov. You may also obtain for
free each of these documents, when available, from Fisher Scientific or PSS
World Medical by directing your request to:
Fisher Scientific International, Inc. PSS World Medical, Inc.
One Liberty Lane 4345 Southpoint Blvd.
Hampton, New Hampshire 03842 Jacksonville, FL 32216
Tel: (603) 929-2346 Tel: (904) 332-3334
Attn: Robert J. Gagalis Attn: David Smith
================================================================================
[FISHER SCIENTIFIC 2
INTERNATIONAL INC. LOGO]
<PAGE> 3
FORWARDING LOOKING STATEMENTS
================================================================================
Certain statements contained herein or made today constitute
"forward-looking statements" as that term is defined under the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
are based on current expectations, forecasts and assumptions that involve
known and unknown risks, uncertainties and other factors that may cause the
actual results, performance or achievements of Fisher Scientific or PSS
World Medical, or industry results, to be materially different from those
contemplated or projected, forecast, estimated or budgeted in or expressed
or implied by such forward looking statements. Such forward-looking
statements include, among others, future product, service, market and
technology development, future benefits of the merger, estimated date to
complete the merger, and the expected impact of the merger on future
earnings. Such risks and uncertainties include, among others, difficulties
in the integration of operations, technologies and products of Fisher
Scientific or PSS World Medical; general economic and business conditions;
industry trends; overseas expansion; loss of major customers or suppliers,
including as a result of this transaction; timing of orders received from
customers; cost and availability and quality of management; availability,
timing and terms of future acquisitions; and availability, terms and
deployment of capital. Neither Fisher Scientific or PSS World Medical
undertakes any obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise. In light of theses risks, uncertainties and assumptions, the
forward-looking events discussed in this communication might not occur.
================================================================================
[FISHER SCIENTIFIC 3
INTERNATIONAL INC. LOGO]
<PAGE> 4
AGENDA
================================================================================
* Transaction / Strategy
* Markets / Business
* E-Commerce
* Financials
================================================================================
[FISHER SCIENTIFIC 4
INTERNATIONAL INC. LOGO]
<PAGE> 5
================================================================================
TRANSACTION / STRATEGY
================================================================================
[FISHER SCIENTIFIC 5
INTERNATIONAL INC. LOGO]
<PAGE> 6
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS -- 2001 ESTIMATED
================================================================================
($ in Millions)
Fisher PSS Combined
------ --- --------
<S> <C> <C> <C>
Sales $2,806 $2,025 $4,831
EBITDA $ 242 $ 100 $ 352
EBITDA Margin 8.2% 4.9% 7.3%
Leverage (Debt/EBITDA) 4.6x 2.1x 3.5x
</TABLE>
================================================================================
[FISHER SCIENTIFIC 6
INTERNATIONAL INC. LOGO]
<PAGE> 7
TRANSACTION SUMMARY (BASED ON JUNE 21, 2000)
================================================================================
* Fixed Exchange Ratio -- 0.3121 of a Fisher Share for Each PSS Share
-- $11.86 Per Share Based On Fisher Price of $38
-- 20% Premium
* Proforma Ownership (fully-diluted)
-- Public 35%
-- Fisher Investor Group 47%(1)
-- Management 18%
(1) Thomas H. Lee Co. 30%; DLJ Merchant Banking Partners 9%; Chase Capital
Partners 6%; Merrill Lynch 2%
================================================================================
[FISHER SCIENTIFIC 7
INTERNATIONAL INC. LOGO]
<PAGE> 8
TRANSACTION SUMMARY - CONTINUED
(BASED ON JUNE 21,2000)
================================================================================
* $840 MM Equity Purchase Price
* Accretive Year 1
* Fisher Cash EPS -- $1.11 in 2000 to $1.75 in 2001
* Expected Closing: Fourth Quarter
================================================================================
[FISHER SCIENTIFIC 8
INTERNATIONAL INC. LOGO]
<PAGE> 9
BUSINESS STRATEGY - 1991/2000
================================================================================
* Diversify into Related Markets
- PSS World Medical
* Expand Technology Leadership
- Alchematrix
* Develop International Capabilities
- Markets, Technology, Sourcing
--------------------------------------------------------------------
Strategy Yielded 39% Compound Annual Return to Shareholders vs
17% Return on S&P 500*
--------------------------------------------------------------------
*As of June 21, 2000
================================================================================
[FISHER SCIENTIFIC 9
INTERNATIONAL INC. LOGO]
<PAGE> 10
FISHER STOCK PERFORMANCE
================================================================================
--------------------------------------------------------------------------------
Weekly
#1 Rel To Prc Appr Total Ret Annual Eq
-----------------------------------------------------
1 -- FISHER SCIENTIFIC 509.37% 509.37%* 43.68%
2 -- S&P 5000 128.74% 166.41% 166.41%* 21.71%
--------------------------------------------------------------------------------
* = No dividends or coupons
[LINE CHART]
* Source Bloomberg
================================================================================
[FISHER SCIENTIFIC 10
INTERNATIONAL INC. LOGO]
<PAGE> 11
TRANSACTION RATIONALE
================================================================================
* Related Markets -- Healthcare and Scientific Research
- Comparable Products
- Common Logistics and Technology
* Broad Healthcare Participation
* Enhanced Growth
* Operational Synergies
* Leverage Global Position and E-Commerce Leadership
================================================================================
[FISHER SCIENTIFIC 11
INTERNATIONAL INC. LOGO]
<PAGE> 12
GROWTH OPPORTUNITIES
================================================================================
* Larger Market Presence
- Vendors / Products
- Customers
* Private Label
* Globalization
* E-Commerce
================================================================================
[FISHER SCIENTIFIC 12
INTERNATIONAL INC. LOGO]
<PAGE> 13
EFFICIENCIES / COST SAVINGS
$30 MILLION OVER 3 YEARS
================================================================================
* Logistics
* Back Office
* Sourcing
- Global
- Vendor Deals
- Manufacturing
* Working Capital
================================================================================
[FISHER SCIENTIFIC 13
INTERNATIONAL INC. LOGO]
<PAGE> 14
================================================================================
MARKETS/BUSINESS
================================================================================
[FISHER SCIENTIFIC 14
INTERNATIONAL INC. LOGO]
<PAGE> 15
TARGET MARKETS
================================================================================
[BAR CHART]
Sources: Analyst and Industry Reports, Company Estimates
================================================================================
[FISHER SCIENTIFIC 15
INTERNATIONAL INC. LOGO]
<PAGE> 16
HEALTHCARE MARKETS
MEDICAL SUPPLIES AND EQUIPMENT
================================================================================
$40 BILLION MARKET
[PIE CHART]
Sources: Analyst Reports and Company Estimates
================================================================================
[FISHER SCIENTIFIC 16
INTERNATIONAL INC. LOGO]
<PAGE> 17
HEALTHCARE MARKET - $40 BILLION
================================================================================
* Aging Population
* Proliferation of Patient Testing
* Shift to Outpatient Services
* Long Term Care Reimbursement Relief
================================================================================
[FISHER SCIENTIFIC 17
INTERNATIONAL INC. LOGO]
<PAGE> 18
AGING POPULATION BASE
POPULATION OVER 65 IN MILLIONS
================================================================================
[BAR CHART]
Source: U.S. Census Bureau
================================================================================
[FISHER SCIENTIFIC 18
INTERNATIONAL INC. LOGO]
<PAGE> 19
MARKET PARTICIPATION (CALENDAR YEAR 1999)
================================================================================
[PIE CHART]
================================================================================
[FISHER SCIENTIFIC 19
INTERNATIONAL INC. LOGO]
<PAGE> 20
RESEARCH MARKET - $20 BILLION
================================================================================
* Research & Development Spending
* Biotech / Human Genome
* Increased Process and Industrial Testing
================================================================================
[FISHER SCIENTIFIC 20
INTERNATIONAL INC. LOGO]
<PAGE> 21
RISING R&D SPENDING
================================================================================
TOTAL R&D SPENDING EXCLUDING
PHARMA R&D SPENDING DEFENSE & ELECTRONICS
------------ -------------
12% CAGR 7% CAGR
------------ -------------
[BAR CHART] [BAR CHART]
Source: Deutsche Bank Analyst Report Source: Industry Reports
================================================================================
[FISHER SCIENTIFIC 21
INTERNATIONAL INC. LOGO]
<PAGE> 22
COMPANY STRENGTHS
================================================================================
* Global Brands
* Broad Customer Base
* E-Commerce Leadership
* Unmatched Product Offering
* Worldwide Logistics and Technology
* Global Sourcing and Self-Manufacturing
================================================================================
[FISHER SCIENTIFIC 22
INTERNATIONAL INC. LOGO]
<PAGE> 23
LEADING GLOBAL BRAND NAMES
4,300 Sales and Customer Service Reps
================================================================================
[FISHER SCIENTIFIC LOGO] 250,000 customers in research
and clinical laboratories
[PHYSICIAN SALES & SERVICE, INC. LOGO] 100,000 physician offices
[DIAGNOSTIC IMAGING INC. LOGO] 45,000 sites
[GULF SOUTH MEDICAL SUPPLY LOGO] 14,000 long term care facilities
================================================================================
[FISHER SCIENTIFIC 23
INTERNATIONAL INC. LOGO]
<PAGE> 24
BROAD CUSTOMER BASE
================================================================================
<TABLE>
<S> <C> <C> <C>
Amerinet Baylor College Med. Bayer Corporation Beverly Enterprises
Tenet BuyPower Government Services Admin Biogen Mariner Post Acute Network
Consorta John Hopkins University Chiron Vencor
EquipMD/Lynx National Institutes of Health Dana Farber Cancer Inst.
Howard Hughes Medical Center Stanford University Dow Chemical
Integrated Health Srv. University of Michigan Eli Lilly Archer-Daniels Midland
Insource University of Pennsylvania Genetics Institute Kraft
Novation University of Wisconsin Hoechst Rohm & Haas
Mayo Foundation Human Genome Sciences Union Carbide
Premier Merck & Co.
Quest Novartis
Schering-Plough
AstraZeneca
</TABLE>
================================================================================
[FISHER SCIENTIFIC 24
INTERNATIONAL INC. LOGO]
<PAGE> 25
LEADING E-COMMERCE
SOLUTION PROVIDER
[FISHER SCIENTIFIC 25
INTERNATIONAL INC. LOGO]
<PAGE> 26
E-COMMERCE LEADERSHIP
30 YEARS OF INNOVATION
================================================================================
* 1967 - Pioneer of E-Commerce Solutions
* 1997 - First Web-Enabled Catalog/Full E-Commerce System
* 1999 - Fishersci.com, ProcureNet Spin-off
* 1999 - Web Enabled Sales Force
* 2000 - Formed Alchematrix
================================================================================
[FISHER SCIENTIFIC 26
INTERNATIONAL INC. LOGO]
<PAGE> 27
ALCHEMATRIX
================================================================================
* First Mover in Scientific Industry
* $175+ M Revenue Run Rate
* Domain Expertise in Multiple Verticals
* "Bricks and Clicks" Advantage
* Global Presence
================================================================================
[FISHER SCIENTIFIC 27
INTERNATIONAL INC. LOGO]
<PAGE> 28
VERTICAL ROLL-OUT STRATEGY ($ IN MILLIONS)
================================================================================
<TABLE>
<CAPTION>
Market Company E-Commerce
Domain Expertise Size Sales Annualized Sales
---------------- ------ ------- ----------------
<S> <C> <C> <C>
Research Labs $20,000 $1,700 $110
Clinical Labs $ 7,500 $ 700 $ 20
Physician Office $ 4,400 $ 700 $ 10
Long Term Care $ 2,500 $ 400 $ 25
Safety $ 7,000 $ 150 $ 10
</TABLE>
================================================================================
[FISHER SCIENTIFIC 28
INTERNATIONAL INC. LOGO]
<PAGE> 29
REGISTERED USER GROWTH
================================================================================
[BAR CHART]
Note: Excludes PSS' Registered Users
================================================================================
[FISHER SCIENTIFIC 29
INTERNATIONAL INC. LOGO]
<PAGE> 30
OTHER E-COMMERCE INITIATIVES
================================================================================
* ProcureNet - B2G E-Commerce
* New Healthcare Exchange
* Science Education
================================================================================
[FISHER SCIENTIFIC 30
INTERNATIONAL INC. LOGO]
<PAGE> 31
UNMATCHED PRODUCTS & SERVICES
80% Recurring Products & Services
================================================================================
================================================================================
[FISHER SCIENTIFIC 31
INTERNATIONAL INC. LOGO]
<PAGE> 32
WORLDWIDE LOGISTICS AND TECHNOLOGY
================================================================================
CUSTOMERS IN 145 COUNTRIES
[ ] Operations [ ] Distributors [ ] Export Countries
================================================================================
[FISHER SCIENTIFIC 32
INTERNATIONAL INC. LOGO]
<PAGE> 33
END-TO-END LOGISTICS / SERVICE
================================================================================
* Thousands of Suppliers
* 135 Worldwide Facilities
* Technology Based Logistics Management
* 1,300 Vehicle Dedicated Fleet
* 1,000 Instrument Service Reps
================================================================================
[FISHER SCIENTIFIC 33
INTERNATIONAL INC. LOGO]
<PAGE> 34
SOURCING EXPERTISE
================================================================================
* Wide Range of Supplier Relationships
- Exclusive
- Non-Exclusive
* Self-Manufactured Products
* Branded / Private Label Products
* Global Capabilities
================================================================================
[FISHER SCIENTIFIC 34
INTERNATIONAL INC. LOGO]
<PAGE> 35
================================================================================
FINANCIALS
================================================================================
[FISHER SCIENTIFIC 35
INTERNATIONAL INC. LOGO]
<PAGE> 36
FISHER - STRONG FINANCIAL RESULTS ($ IN MILLIONS)
================================================================================
15% CAGR IN SALES 24% CAGR IN EBITDA
[BAR CHART] [BAR CHART]
================================================================================
[FISHER SCIENTIFIC 36
INTERNATIONAL INC. LOGO]
<PAGE> 37
FISHER - IMPROVING GROSS MARGINS
================================================================================
[LINE CHART]
Excludes restructuring and non-recurring expenses
================================================================================
[FISHER SCIENTIFIC 37
INTERNATIONAL INC. LOGO]
<PAGE> 38
FISHER - REDUCED WORKING CAPITAL INVESTMENT
================================================================================
INVESTMENT PERCENT OF SALES
($ in Millions)
[LINE CHART] [LINE CHART]
================================================================================
[FISHER SCIENTIFIC 38
INTERNATIONAL INC. LOGO]
<PAGE> 39
PSS - HISTORICAL FINANCIAL SUMMARY
================================================================================
<TABLE>
<CAPTION>
Year Ended March 31,
1998 1999 2000
---- ---- ----
<S> <C> <C> <C>
Sales $1,382 $1,565 $1,794
Gross Margin % 26.5% 27.0% 26.3%
EBITDA $ 79 $ 110 $ 96
</TABLE>
================================================================================
[FISHER SCIENTIFIC 39
INTERNATIONAL INC. LOGO]
<PAGE> 40
PROJECTIONS
================================================================================
($ billions, except per share amounts)
<TABLE>
<CAPTION>
CAGR
1999 2000E 2001E 2002E 2003E (00-03)
---- ----- ----- ----- ----- -------
<S> <C> <C> <C> <C> <C> <C>
Revenue $4.23 $4.50 $4.83 $5.15 $5.45 7%
EBITDA - Fisher .23 .23 .24 .26 .28 7%
- PSS --- --- .11 .13 .15 16%
- Total .23 .23 .35 .39 .43 10%
Cash EPS $ .84 $1.11 $1.75 $2.13 $2.56 32%
</TABLE>
Note: Goodwill Amortization Represents $0.54 Per Share.
================================================================================
[FISHER SCIENTIFIC 40
INTERNATIONAL INC. LOGO]
<PAGE> 41
PSS EBITDA RECONCILIATION
================================================================================
($ millions)
Reported EBITDA $ 65
One-time Charges (Excluding Vendor effects) 31
----
Adjusted 2000 EBITDA $ 96
Operating Synergies $ 10
Recovery in Abbott/Trex and Core Business Growth 4
----
2001 Estimated EBITDA $110
================================================================================
[FISHER SCIENTIFIC 41
INTERNATIONAL INC. LOGO]
<PAGE> 42
SUMMARY
================================================================================
* Leading Supplier to Healthcare and Research
* E-Commerce Leadership and Growth
* Accretive Year 1
* 32% Cash EPS CAGR (3 Years)
* Strong Management Team / Established Track Record
================================================================================
[FISHER SCIENTIFIC 42
INTERNATIONAL INC. LOGO]