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KMART'S OFFICEMAX UNIT COMPLETES ACQUISITION OF OW OFFICE WAREHOUSE

 KMART'S OFFICEMAX UNIT COMPLETES ACQUISITION OF OW OFFICE WAREHOUSE
 TROY, Mich., June 30 /PRNewswire/ -- Kmart Corporation (NYSE: KM) today announced that its Cleveland-based office products superstore unit, OfficeMax, Inc., has completed its previously announced acquisition of OW Office Warehouse, Inc. (NASDAQ: OWWH), a similar 46-store chain headquartered in Virginia Beach, Va. At a special meeting today, Office Warehouse shareholders approved this transaction whereby they will receive $11 per share in cash.
 OW was founded in 1988 and was the fifth largest office products superstore chain in the country with stores in 26 markets in 12 states, primarily along the Atlantic coast and in the South.
 Michael Feuer, OfficeMax's president and CEO, said that the company would immediately begin changing the name of the OW stores to OfficeMax and incorporating OfficeMax's merchandise format and formula into these newly acquired locations. Feuer added that the OW acquisition solidifies OfficeMax's dominant position in a number of its key markets where OW also operated stores and provides a nucleus for future growth in 17 new markets. These new areas include greater Philadelphia, Memphis, Nashville and other key secondary markets throughout Virginia, North and South Carolina and Alabama.
 OfficeMax said that it will close OW's corporate headquarters in Virginia Beach within the next several weeks, moving all functions to its corporate facility in suburban Cleveland. "The synergies of the OW stores with OfficeMax's operation and our ability to eliminate OW's corporate overhead in Virginia Beach were among the key attractions of this transaction," Feuer stated.
 OfficeMax, including the OW stores, now operates approximately 140 supermarket-size outlets in 57 markets in 24 states from Massachusetts to Utah. As previously announced, OfficeMax plans to grow to approximately 175 stores by the end of its current fiscal year, January 1993. The company was founded in April 1988 and began this fiscal year with 79 stores. Kmart initially acquired a 22-percent interest in OfficeMax in November 1990 and increased its holding to approximately 93 percent late last year. The balance of the equity in the company was retained by co-founders Feuer and Robert Hurwitz, who is vice chairman.
 Kmart Corporation serves America with over 4,000 retail outlets in all 50 states in the United States and in Puerto Rico and Canada. Kmart currently operates 2,381 Kmart stores and, in addition to OfficeMax, is also the parent company of PACE Membership Warehouse, Builders Square, Payless Drug Stores, Waldenbooks and The Sports Authority.
 Kmart Corporation's stock is listed on the New York, Pacific and Midwest stock exchanges. Its trading symbol is KM.
 -0- 6/30/92
 /CONTACT: Orren F. Knauer, director - investor relations, Kmart, 313-643-1040; or Michael Feuer, president, OfficeMax, 216-766-2419/
 (KM OWWH) CO: Kmart Corporation; OfficeMax, Inc.; OW Office Warehouse, Inc. ST: Michigan, Ohio, Virginia IN: REA SU: TNM


SB-ML -- DE009 -- 5077 06/30/92 10:11 EDT
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Publication:PR Newswire
Date:Jun 30, 1992
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