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FOXMEYER AGREES TO PURCHASE HARRIS ACQUISITION WILL SUBSTANTIALLY EXPAND FOXMEYER OPERATIONS

 FOXMEYER AGREES TO PURCHASE HARRIS
 ACQUISITION WILL SUBSTANTIALLY EXPAND FOXMEYER OPERATIONS
 DALLAS, March 30 /PRNewswire/ -- FoxMeyer Corporation (NYSE: FOX) announced today it has agreed to acquire all of the shares of The Harris Companies Inc. The acquisition will be a cash transaction estimated at approximately $120 million, after working capital adjustments, including the repayment of Harris' bank debt, according to Robert L. King, FoxMeyer's president and chief executive officer.
 FoxMeyer is the third-largest drug distribution company in the United States, while Harris is the seventh-largest. Dallas-based FoxMeyer reported sales of $2.9 billion for the year ended March 31, 1991; for the first nine months of the current year, FoxMeyer's sales were $2.24 billion. Harris, headquartered in Cleveland, recorded sales of approximately $720 million for the year ended Dec. 31, 1991, an increase of more than 13 percent over sales for the prior year.
 FoxMeyer entered into a six-year term loan of up to $130 million, based on the final acquisition price, to finance the acquisition. Banque Paribas and NationsBank are the agent and co-agent respectively of a consortium of U.S. and foreign banks that arranged the loan.
 FoxMeyer and the bank consortium also entered into a $200 million working capital facility that replaces the company's current $135 million line of credit.
 The acquisition agreement was signed by FoxMeyer and Rabco Health Services, Inc., Harris' parent company.
 "We expect this acquisition to be non-dilutive and to be a positive contributor to our profits in succeeding years. It is consistent with our previously stated intention to 'fill out the map' and make FoxMeyer a nationwide distributor. Harris will strengthen our presence in the Southeast and Midwest, and take us into New England. Along with enhancing our distribution and information systems capabilities, it brings a customer mix that complements our own," King said.
 Melvyn J. Estrin and Abbey J. Butler, FoxMeyer co-chairmen, said, "We believe Harris will add to FoxMeyer's momentum in sales and earnings growth and further secure our position as a major factor in the pharmaceutical distribution industry."
 FoxMeyer and Harris provide pharmaceuticals, over-the-counter drugs, health care products and beauty aids to independent and chain pharmacies, mass merchandisers, hospitals and other health care institutions. Their trade areas cover all of the continental United States except for California, Oregon and Washington. Completion of the sale is subject to compliance with the Hart-Scott-Rodino Antitrust Improvement Act and other customary conditions.
 -0- 3/30/92
 /CONTACT: J. Warren Henry of FoxMeyer Corp., 214-446-4270/
 (FOX) CO: FoxMeyer Coporation; Harris Companies Inc. ST: Texas IN: MTC SU: TNM


TQ -- NY023 -- 2766 03/30/92 09:58 EST
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Publication:PR Newswire
Date:Mar 30, 1992
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