425 1 0001.txt FISHER SCIENTIFIC INTERNATIONAL, INC. 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 ================================================================================ 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] 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] 4 AGENDA ================================================================================ * Transaction / Strategy * Markets / Business * E-Commerce * Financials ================================================================================ [FISHER SCIENTIFIC 4 INTERNATIONAL INC. LOGO] 5 ================================================================================ TRANSACTION / STRATEGY ================================================================================ [FISHER SCIENTIFIC 5 INTERNATIONAL INC. LOGO] 6
FINANCIAL HIGHLIGHTS -- 2001 ESTIMATED ================================================================================ ($ in Millions) Fisher PSS Combined ------ --- -------- 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
================================================================================ [FISHER SCIENTIFIC 6 INTERNATIONAL INC. LOGO] 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] 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] 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] 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] 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] 12 GROWTH OPPORTUNITIES ================================================================================ * Larger Market Presence - Vendors / Products - Customers * Private Label * Globalization * E-Commerce ================================================================================ [FISHER SCIENTIFIC 12 INTERNATIONAL INC. LOGO] 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] 14 ================================================================================ MARKETS/BUSINESS ================================================================================ [FISHER SCIENTIFIC 14 INTERNATIONAL INC. LOGO] 15 TARGET MARKETS ================================================================================ [BAR CHART] Sources: Analyst and Industry Reports, Company Estimates ================================================================================ [FISHER SCIENTIFIC 15 INTERNATIONAL INC. LOGO] 16 HEALTHCARE MARKETS MEDICAL SUPPLIES AND EQUIPMENT ================================================================================ $40 BILLION MARKET [PIE CHART] Sources: Analyst Reports and Company Estimates ================================================================================ [FISHER SCIENTIFIC 16 INTERNATIONAL INC. LOGO] 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] 18 AGING POPULATION BASE POPULATION OVER 65 IN MILLIONS ================================================================================ [BAR CHART] Source: U.S. Census Bureau ================================================================================ [FISHER SCIENTIFIC 18 INTERNATIONAL INC. LOGO] 19 MARKET PARTICIPATION (CALENDAR YEAR 1999) ================================================================================ [PIE CHART] ================================================================================ [FISHER SCIENTIFIC 19 INTERNATIONAL INC. LOGO] 20 RESEARCH MARKET - $20 BILLION ================================================================================ * Research & Development Spending * Biotech / Human Genome * Increased Process and Industrial Testing ================================================================================ [FISHER SCIENTIFIC 20 INTERNATIONAL INC. LOGO] 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] 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] 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] 24 BROAD CUSTOMER BASE ================================================================================ 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
================================================================================ [FISHER SCIENTIFIC 24 INTERNATIONAL INC. LOGO] 25 LEADING E-COMMERCE SOLUTION PROVIDER [FISHER SCIENTIFIC 25 INTERNATIONAL INC. LOGO] 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] 27 ALCHEMATRIX ================================================================================ * First Mover in Scientific Industry * $175+ M Revenue Run Rate * Domain Expertise in Multiple Verticals * "Bricks and Clicks" Advantage * Global Presence ================================================================================ [FISHER SCIENTIFIC 27 INTERNATIONAL INC. LOGO] 28 VERTICAL ROLL-OUT STRATEGY ($ IN MILLIONS) ================================================================================
Market Company E-Commerce Domain Expertise Size Sales Annualized Sales ---------------- ------ ------- ---------------- 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
================================================================================ [FISHER SCIENTIFIC 28 INTERNATIONAL INC. LOGO] 29 REGISTERED USER GROWTH ================================================================================ [BAR CHART] Note: Excludes PSS' Registered Users ================================================================================ [FISHER SCIENTIFIC 29 INTERNATIONAL INC. LOGO] 30 OTHER E-COMMERCE INITIATIVES ================================================================================ * ProcureNet - B2G E-Commerce * New Healthcare Exchange * Science Education ================================================================================ [FISHER SCIENTIFIC 30 INTERNATIONAL INC. LOGO] 31 UNMATCHED PRODUCTS & SERVICES 80% Recurring Products & Services ================================================================================ ================================================================================ [FISHER SCIENTIFIC 31 INTERNATIONAL INC. LOGO] 32 WORLDWIDE LOGISTICS AND TECHNOLOGY ================================================================================ CUSTOMERS IN 145 COUNTRIES [ ] Operations [ ] Distributors [ ] Export Countries ================================================================================ [FISHER SCIENTIFIC 32 INTERNATIONAL INC. LOGO] 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] 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] 35 ================================================================================ FINANCIALS ================================================================================ [FISHER SCIENTIFIC 35 INTERNATIONAL INC. LOGO] 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] 37 FISHER - IMPROVING GROSS MARGINS ================================================================================ [LINE CHART] Excludes restructuring and non-recurring expenses ================================================================================ [FISHER SCIENTIFIC 37 INTERNATIONAL INC. LOGO] 38 FISHER - REDUCED WORKING CAPITAL INVESTMENT ================================================================================ INVESTMENT PERCENT OF SALES ($ in Millions) [LINE CHART] [LINE CHART] ================================================================================ [FISHER SCIENTIFIC 38 INTERNATIONAL INC. LOGO] 39 PSS - HISTORICAL FINANCIAL SUMMARY ================================================================================
Year Ended March 31, 1998 1999 2000 ---- ---- ---- Sales $1,382 $1,565 $1,794 Gross Margin % 26.5% 27.0% 26.3% EBITDA $ 79 $ 110 $ 96
================================================================================ [FISHER SCIENTIFIC 39 INTERNATIONAL INC. LOGO] 40 PROJECTIONS ================================================================================ ($ billions, except per share amounts)
CAGR 1999 2000E 2001E 2002E 2003E (00-03) ---- ----- ----- ----- ----- ------- 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%
Note: Goodwill Amortization Represents $0.54 Per Share. ================================================================================ [FISHER SCIENTIFIC 40 INTERNATIONAL INC. LOGO] 41 PSS EBITDA RECONCILIATION ================================================================================ ($ 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] 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]