D & K Healthcare Resources Completes Acquisition of Diversified Healthcare, LLC.Business Editors, Health/Medical Writers ST. LOUIS--(BUSINESS WIRE)--June 18, 2001 D & K Healthcare Resources, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :DKWD DKWD Disk Write Data ) announced today that it has completed the acquisition of privately held Diversified Healthcare, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , effective June 15, 2001. This transaction is expected to be accretive to earnings in the first full year. Diversified Healthcare, based in Owensboro, Kentucky Owensboro is the third largest city in Kentucky and the county seat of Daviess County.GR6 It is located on U.S. Highway 60 about 32 miles southeast of Evansville, Indiana and is the principal city of the Owensboro, Kentucky Metropolitan Statistical Area. , provides comprehensive pharmaceutical distribution services to more than 700 customers in the states of Indiana, Illinois, Kentucky and Tennessee. For the year ended December 31, 2000, Diversified Healthcare had revenues of $166.4 million. In business since 1874, it has approximately 86 employees. Commenting on the transaction, D&K Healthcare Resources Chairman and Chief Executive Officer J. Hord Armstrong, III stated, "We welcome the talented and dedicated staff of Diversified Healthcare to D&K. This acquisition expands our presence in solid markets while further diversifying our customer base, principally among independent and regional pharmacy businesses. Importantly, we share the same culture and commitment to superior customer service and reliability, as demonstrated by the long term relationships, and strong reputation that Diversified brings to D&K." With fiscal 2000 revenues of $1.46 billion, St. Louis-based D&K Healthcare Resources, Inc., is a wholesale distributor of pharmaceutical and related healthcare and beauty aid products to independent and regional pharmacies, national pharmacy chains and other healthcare providers. D&K currently services customers in 24 states primarily in the Midwest and South from distribution facilities in Cape Girardeau Cape Girardeau (jĭrär`dō, jērərdō`), city (1990 pop. 61,633), Cape Girardeau co., SE Mo., overlooking the Mississippi River; founded 1793, inc. as a city 1843. , MO; Davie, FL; Lexington, KY; Minneapolis, MN; and Aberdeen, SD. D&K also offers a variety of additional services to its customers, including inventory management, services designed to contain costs, information technology systems and various marketing programs related to generic pharmaceuticals and other products. In addition, D&K owns a 50% equity interest in Pharmaceutical Buyers, Inc., a recognized alternate-site group purchasing organization A group purchasing organization is an entity that leverages the purchasing power of a group of businesses to obtain discounts from vendors based on the collective buying power of the GPO members. Many GPOs are funded by administrative fees that are actually paid by the vendors. . D&K invites you to visit its Web site at http://www.dkwd.com. This press release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements are inherently subject to risks and uncertainties. D&K's actual results could differ materially from those currently anticipated due to a number of factors, including without limitation, the competitive nature of the wholesale pharmaceutical distribution industry, with many competitors having substantially greater resources than D&K, and D&K's customers generally having the right to terminate or reduce their purchases on relatively short notice, the changing business and regulatory environment of the healthcare industry in which D&K operates, change in interest rates and other factors set forth in reports and other documents filed by D&K with the Securities and Exchange Commission from time to time. D&K undertakes no obligation to publicly update or revise any forward-looking statements. |
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