CVS completes Revco merger following FTC approval.WOONSOCKET, RI--(BUSINESS WIRE)--May 30, 1997--CVS Corporation (NYSE NYSE See: New York Stock Exchange : CVS (1) (Concurrent Versions System) A version control system for Unix that was initially developed as a series of shell scripts in the mid-1980s. CVS maintains the changes between one source code version and another and stores all the changes in one file. ) today announced that it has completed its merger with Revco D.S D.S Drainage Structure (flood protection) ., Inc., following provisional approval from the Federal Trade Commission of an agreement allowing CVS to proceed with the transaction. In the merger, each Revco share will be exchanged for 0.8842 CVS shares, resulting in the issuance of a total of approximately 60 million CVS shares to Revco shareholders, based on a total of about 67.8 million outstanding Revco shares, excluding approximately four million Revco stock options. Under the agreement with the Commission, which will now be placed on the public record for comment, CVS will divest a total of 120 Revco stores out of a combined CVS/Revco store base of over 4,000 stores. 114 of the stores to be divested are located in the Richmond and Tidewater regions of Virginia and will be sold to Eckerd Corporation, a division of JC Penney. The assets of the remaining six stores, which are located in Binghamton, New York This article is about the City of Binghamton, New York. For the adjacent Town of Binghamton, see Binghamton (town), New York. Binghamton is a city located in the Southern Tier of New York in the United States. It is the county seat of Broome County. , will be sold to Medicine Shoppe. The sales to Eckerd and Medicine Shoppe are subject to certain closing conditions. Stanley P. Goldstein, Chairman and Chief Executive Officer, said, "We are very excited to complete this merger, which brings together two industry leaders and will provide new opportunities for CVS to accelerate its growth." On February 7, 1997, CVS announced it had signed a definitive agreement providing for the combination of CVS and Revco in a stock transaction valued at approximately $2.8 billion, plus the assumption of approximately $900 million of Revco debt. The combined company will be the nation's largest chain drugstore company based on store count and will be named CVS Corporation, with its headquarters in Woonsocket, Rhode Island
CVS shareholders voted to approve the transaction at the company's Annual Meeting on May 27, 1997. Revco shareholders approved the merger at a special meeting on May 28, 1997. Revco, with calendar year 1996 sales of approximately $5.4 billion, operates nearly 2,600 stores in 17 Midwestern, Southeastern and Eastern states Eastern States can refer to several locations:
CVS, with annual sales of $5.5 billion in 1996, is a leading drug store chain in the Northeast and Middle Atlantic regions. As of April 26, 1997, CVS operated 1,425 stores in 14 states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). . CONTACT: Investor Contact: Nancy Christal Vice President, Investor Relations Investor relations The process by which the corporation communicates with its investors. (914) 722-4704 or Media Contacts: Fred McGrail Director, Corp. Communications (401) 765-1500 x 4630 or Kekst and Company Jim Fingeroth Wendi Kopsick (212) 593-2655 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion