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FOXMEYER SIGNS $1.4 BILLION CONTRACT TO SUPPLY SNYDER'S DRUG STORES; FOXMEYER BUYS RETAIL CHAIN'S WAREHOUSE ASSETS

FOXMEYER SIGNS $1.4 BILLION CONTRACT TO SUPPLY SNYDER'S DRUG STORES;
 FOXMEYER BUYS RETAIL CHAIN'S WAREHOUSE ASSETS
 DALLAS, Sept. 16 /PRNewswire/ -- FoxMeyer Corporation (NYSE: FOX) has signed a seven-year exclusive agreement to supply Snyder's Drug Stores, Inc. with 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; terms for the purchase were not disclosed.
 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. FoxMeyer will operate Snyder's warehouse in Eagan, Minnesota. The company did not acquire any assets related to Snyder's retail drug stores or retail operations.
 Since January of this year, FoxMeyer has signed other multi-year supply agreements with May's Drug Stores, Inc. of Tulsa, Oklahoma; Omnicare, Inc. of Cincinnati, Ohio; and Perry Drug Stores, Inc. of Pontiac, Michigan. These and the Snyder's contract are expected to contribute more than $3 billion in sales to FoxMeyer over the next five years.
 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- 9/16/92 R
 /CONTACT: J. Warren Henry of FoxMeyer Corporation, 214-446-4270, or Mary Gustafson of Snyder's Drug Stores, Inc., 612-342-9707/
 (FOX) CO: FoxMeyer Corporation; Snyder's Drug Stores Inc. ST: Texas, Michigan, Minnesota IN: MTC REA SU: CON


SH -- NY012R -- 0238 09/16/92 15:20 EDT
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Publication:PR Newswire
Date:Sep 16, 1992
Words:292
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