PR Newswire

DALLAS — FoxMeyer Corporation (NYSE: FOX) announced today it has completed the previously announced purchase of all of the shares of Harris Wholesale Company for approximately $120 million, after working capital adjustments, including the repayment of Harris' bank debt. The all-cash transaction combines the nation's third and seventh-largest drug distributors, according to Robert L. King, FoxMeyer president and chief executive officer.

Dallas-based FoxMeyer recently reported record sales of $3.1 billion and record net income of $37.8 million for the year ended March 31, 1992. Harris, which is headquartered in Cleveland, recorded sales of approximately $720 million for the year ended Dec. 31, 1991.

Abbey J. Butler and Melvyn J. Estrin, FoxMeyer co-chairmen, said, "We expect this acquisition to add to the momentum of our sales growth. Based upon the companies' combined sales and historical rates of growth, we believe that FoxMeyer can achieve $4.3 billion in sales this year. The purchase demonstrates FoxMeyer's commitment to play a major role as the drug distribution industry expands."

"Based on anticipated savings in overhead and warehouse operations, we expect the combination to be non-dilutive this year and to contribute significantly to earnings going forward," King said. "Harris is an excellent acquisition for FoxMeyer PP it strengthens our customer base in the Southeast and Midwest, and introduces us into New England. Along with adding to our geographic coverage, Harris' customer mix complements FoxMeyer's, particularly in the independent pharmacy, hospital and institutional segments."

FoxMeyer financed the acquisition with a six-year term loan; Banque Paribas and NationsBank were agent and co-agent for a consortium of U.S. and foreign banks that arranged the loan. FoxMeyer and the bank group also has entered into a $200 million working capital line of credit agreement that replaced the company's $135 million line of credit.

FoxMeyer provides pharmaceuticals, over-the-counter drugs, health care products and beauty aids to independent and chain pharmacies, mass merchandisers, hospitals and health care institutions. Its trade area now covers all of the United States except for the West Coast, Alaska and Hawaii.

© 1992, PR Newswire