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FOXMEYER ENTERS INTO $1.4B AGREEMENT IN PRINCIPLE TO SUPPLY SNYDER'S DRUG STORES; FOXMEYER ALSO TO BUY RETAIL CHAIN'S WAREHOUSE ASSETS

 FOXMEYER ENTERS INTO $1.4B AGREEMENT IN PRINCIPLE TO SUPPLY SNYDER'S
 DRUG STORES; FOXMEYER ALSO TO BUY RETAIL CHAIN'S WAREHOUSE ASSETS
 DALLAS, Aug. 20 /PRNewswire/ -- FoxMeyer Corporation (NYSE: FOX) announced today that it has signed a seven-year agreement in principle to act as exclusive supplier to Snyder's Drug Stores, Inc., providing pharmaceuticals, over-the-counter drugs, health and beauty aids, and general merchandise. The agreement is expected to generate approximately $170 million in sales for FoxMeyer in the initial year of the contract, and approximately $1.4 billion over the full term. FoxMeyer has also agreed to purchase Snyder's warehouse and distribution assets.
 Snyder's operates or services 258 stores in Illinois, Iowa, Michigan, Minnesota, Montana, Nebraska, North Dakota, South Dakota and Wisconsin. The company is the leading retail drugstore chain in Minneapolis/St. Paul, where it is based, and the leading drugstore wholesaler in Minnesota. With the final signing of a contract, FoxMeyer will own and operate Snyder's warehouse and distribution system. FoxMeyer will not acquire any assets related to Snyder's retail drug stores or retail operations.
 "We're excited about this agreement and the opportunities it represents for both companies. As a strategic partner with Snyder's, we will build on an already strong supplier/customer relationship and strengthen FoxMeyer's distribution capacity in the Upper Midwest, particularly Minnesota," said Thomas L. Anderson, FoxMeyer executive vice president and chief operating officer. "Our priority this year has been to continue building partnerships like this with regional chains of drugstores and health care institutions. Snyder's is one of the premier chains in that part of the United States."
 Donald D. Beeler, Snyder's chairman, president and chief executive officer, echoed Anderson's comments about the agreement. "This is a wonderful opportunity for both companies, and we are looking forward to the long-term relationship," Beeler said.
 Anderson noted that his company expects to bring efficiencies to the combined FoxMeyer/Snyder distribution system and provide better services to both companies' customers in the region. Since January of this year, FoxMeyer has signed other multi-year supply agreements with May's Drug Stores, Inc. of Tulsa, Okla.; Omnicare, Inc. of Cincinnati; and Perry Drug Stores, Inc. of Pontiac, Mich.
 FoxMeyer, based in Dallas, is the nation's third largest pharmaceuticals distributor, reporting record sales of more than $3.1 billion for the fiscal year ended March 31, 1992.
 -0- 8/20/92
 /CONTACT: J. Warren Henry of FoxMeyer, 214-446-4270; or Mary Gustafson of Snyder's Drug Stores, 612-342-9707/
 (FOX) CO: FoxMeyer Corporation; Snyder's Drug Stores, Inc. ST: Texas, Minnesota IN: MTC REA SU:


TS -- NY019 -- 1642 08/20/92 10:41 EDT
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Publication:PR Newswire
Date:Aug 20, 1992
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