CARDINAL DISTRIBUTION, INC. AGREES TO ACQUIRE PRN SERVICES, INC.
DUBLIN, Ohio, Oct. 28 /PRNewswire/ -- Cardinal Distribution, Inc. (NASDAQ: CDIC) and PRN Services, Inc. (PRN) jointly announced today that they have entered into an agreement providing for Cardinal to acquire PRN in a stock transaction. PRN, headquartered in Madison Heights, Mich., was founded jointly by Frederick L. Erlich and Fredrick Kamienny in 1972. It is the nation's leading distributor of pharmaceuticals and medical supplies to oncologists and oncology clinics with annualized sales of approximately $85 million. PRN serves customers nationwide from four distribution centers, and is an industry leader in utilization of telemarketing and direct mail programs. PRN will merge with Cardinal's specialty wholesaling operation, National Specialty Services, Inc. (NSS). NSS was established in 1992 as a national distributor of therapeutic plasma and other specialty products to hospitals, clinics, physicians and the alternate site marketplace. NSS, with annualized sales of approximately $75 million, is one of Cardinal's rapidly growing specialty businesses. Gregory A. Serrao, President, National Specialty Services, Inc., stated that PRN is widely respected by oncologists as a high quality, cost effective product provider. "This transaction will significantly enhance NSS' presence in the specialty distribution marketplace and make us the clear leader in the oncology market, which is one of the largest alternate care markets for pharmaceuticals," he said. "It is also consistent with our goal of providing pharmaceutical manufacturers with unique, broad-based marketing services for the distribution of their products on a nationwide basis." In a joint statement, Frederick Erlich and Fredrick Kamienny expressed great enthusiasm for the combination of PRN with Cardinal. "Both of our companies have excellent marketing operations which will enable us to broaden our opportunities with manufacturers, increase our market share, and increase customer profitability and loyalty," they said. "We consider Cardinal an outstanding partner and we are very excited about the growth opportunities we can pursue together." Robert D. Walter, chairman and chief executive officer of Cardinal, stated that the combination of PRN and NSS would further differentiate Cardinal in the pharmaceutical wholesaling industry. "Building our specialty businesses enhances both customer and manufacturer relationships and expands our margins," he commented. "I am especially pleased that Fred Erlich and Fred Kamienny will continue to be associated with the business. I believe that quality mergers with companies like PRN will enable Cardinal to be a strong industry leader in the rapidly changing healthcare distribution industry. PRN and NSS are an excellent fit .... this transaction will truly complement our core drug distribution business. Just as our recently announced merger with Whitmire Distribution Corporation will expand the scope of our core business, PRN will expand our role in specialty distribution. Both our customer and supplier partners increasingly value this type of expanded capacity from Cardinal as the healthcare industry continues to consolidate in response to proposed healthcare reforms." Completion of the PRN acquisition is anticipated to occur by year- end and is subject to customary conditions and regulatory approvals. Cardinal Distribution, Inc. is a Dublin, Ohio, based wholesale drug distributor serving independent and chain drug stores, hospitals, and alternate site customers located primarily in the eastern United States. Cardinal currently has annualized revenues exceeding $2 billion. -0- 10/28/93 /CONTACT: David Bearman of Cardinal Distribution, 614-761-8700/ (CDIC)
CO: Cardinal Distribution, Inc.; PRN Services, Inc. ST: Ohio, Michigan IN: MTC SU: TNM
BM -- CL020 -- 8036 10/28/93 14:32 EDT
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|Date:||Oct 28, 1993|
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