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GRANCARE COMPLETES ACQUISITION OF COMPUPHARM -- INSTITUTIONAL PHARMACY WITH ANNUAL REVENUES EXCEEDING $70 MILLION

 CULVER CITY, Calif., Dec. 29 /PRNewswire/ -- GranCare Inc. (NYSE: GC) today announced that it has completed the acquisition of CompuPharm Inc. in exchange for approximately 3.0 million shares of GranCare stock and assumption of approximately $16 million of CompuPharm's outstanding debt.
 CompuPharm, the largest independent provider of 24-hour unit dose pharmacy services in the United States, has annual revenues in excess of $70 million. The acquisition significantly expands GranCare's pharmacy operations, more than doubling the number of beds serviced by GranCare to approximately 57,000.
 CompuPharm currently markets its pharmacy services to 190 long-term healthcare facilities serving 32,000 beds, 10 correctional institutions serving approximately 3,000 inmates, and 10 community clinics serving approximately 38,000 outpatients in seven states. The current senior management of CompuPharm will remain in place.
 Coupled with GranCare's June 1993 acquisition of Winyah Dispensary in South Carolina, this acquisition provides GranCare with a major pharmacy presence extending on the East Coast from New York to Georgia.
 Gene E. Burleson, GranCare president and chief executive officer, said, "We are excited by the profit potential represented by the combined companies. We expect to significantly enhance our cash flow and bottom line through the integration of the highly computerized operational systems of CompuPharm into GranCare, and the addition of several of GranCare's product lines into facilities served by CompuPharm."
 GranCare also operates 83 long-term health care facilities totaling more than 11,300 beds located in California, Michigan, Wisconsin, Colorado, Arizona, and South Dakota; home health care operations; and a range of rehabilitation services.
 GranCare reported revenues of $301.6 million and net income of $9.9 million, or $1.08 per share for the year ended Dec. 31, 1992, and revenues of $323.9 million and net income of $9.6 million, or $.93 per primary share for the nine months ended Sept. 30, 1993.
 -0- 12/29/93
 /CONTACT: Gene Burleson, GranCare, 310-645-1555; or Craig Parsons or Cecilia Wilkinson, Pondel Parsons & Wilkinson, 310-207-9300/
 (GC)


CO: GranCare Inc.; CompuPharm Inc. ST: California IN: HEA SU: TNM

MF-JK -- LA006 -- 7728 12/29/93 09:00 EST
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Publication:PR Newswire
Date:Dec 29, 1993
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