Buyer to Merge Medical Imaging Firms; Ex-PSS Subsidiary Is Part of New Deal

Article excerpt

Byline: Mark Basch, Times-Union business writer

After acquiring two medical imaging supply companies this week, including Jacksonville-based Diagnostic Imaging Inc., Platinum Equity LLC confirmed yesterday that it will merge the two businesses into a single company.

However, Platinum, a Los Angeles-based global acquisition firm, is not yet ready to announce details of the combined company, not even a name.

Platinum acquired Diagnostic Imaging from Jacksonville-based PSS World Medical Inc. for $116 million earlier this week. Diagnostic Imaging had revenue of $712 million in the last fiscal year and employed 213 people in Jacksonville, as well as several hundred in other locations.

Platinum also this week completed its acquisition of the Health Care Products division of Royal Philips Electronics. The Philips operation, based in Cleveland, projected revenue of $600 million this year and has more than 900 employees.

The combination of the two companies will produce one of the largest distributors of radiology-related products, such as X-ray equipment and medical imaging film.

"This will be a strategic combination of two very well-respected companies to create a market leader that delivers more solutions and better services to customers of both organizations," said a statement by Platinum Chairman and Chief Executive Officer Tom T. …