ALLOU HEALTH & BEAUTY CARE ANNOUNCES ITS INTENTIONS TO ACQUIRE M. SOBOL, INC.
BRENTWOOD, N.Y., March 1 /PRNewswire/ -- Allou Health & Beauty Care, Inc. (AMEX: ALU), today announced that it has entered into an agreement to acquire the common stock of M. Sobol, Inc., a privately owned direct manufacturers' distributor of branded pharmaceutical prescription medications. M. Sobol, Inc., in business since 1928, had sales of $21.6 million for its 1992 fiscal year. The purchase price for the shares of Sobol is cash plus installment payments over several years at a favorable rate of interest. Commenting on this acquisition, David Shamilzadeh, senior vice president finance of Allou, stated, "This transaction should be cash flow positive in that internally generated funds from Sobol's operations will be sufficient to meet the annual installment obligations of Allou." The president and sole stockholder of M. Sobol, Inc. has agreed to continue as president of M. Sobol. The closing is subject to completion of customary due diligence of M. Sobol, Incorporated. Allou Health & Beauty Care, Inc. is the premier distributor of over 8,000 nationally advertised health and beauty aid products in the Northeast and Miami areas. In addition, the company is a leading nationwide distributor of over 7,000 prestige designer fragrances and cosmetics. The company also distributes nationally advertised non- perishable branded food items. Allou's account base consists of 3,500 independent drug and convenience stores including the national chain stores. -0- 3/1/93 /CONTACT: David Shamilzadeh, senior vice president finance of Allou Health & Beauty Care, 516-273-4000/ (ALU)
CO: Allou Health & Beauty Care, Inc.; M. Sobol, Inc. ST: New York IN: REA MTC SU: TNM
LR-PS -- NY019 -- 1220 03/01/93 08:47 EST
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|Date:||Mar 1, 1993|
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