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GRANCARE TO ACQUIRE COMPUPHARM, A MAJOR INSTITUTIONAL PHARMACY WITH ANNUAL REVENUES EXCEEDING $70 MILLION

 CULVER CITY, Calif. Aug. 24 /PRNewswire/ -- GranCare Inc. (NYSE: GC) today announced that it has entered into an agreement to acquire through a merger, CompuPharm Inc. of Whippany, N.J., for $61 million in GranCare stock. GranCare expects the acquisition to be completed before Nov. 30, 1993.
 CompuPharm is believed to be the largest independent provider of 24-hour unit dose pharmacy services in the United States, with annual revenues in excess of $70 million. It currently markets its pharmacy services to 190 long-term health care facilities serving 32,000 beds, 10 correctional institutions serving approximately 10,000 inmates and 15 community clinics serving approximately 38,000 outpatients in seven states. The current senior management of CompuPharm will remain in place.
 The acquisition would more than double the number of beds serviced by GranCare's pharmacy operations to approximately 57,000. Coupled with GranCare's June 1993 acquisition of Winyah Dispensary in South Carolina, this acquisition would provide GranCare with a major pharmacy presence extending on the East Coast from New York to Georgia. On a pro forma basis based on GranCare's four quarters ended June 30, 1993, the addition of CompuPharm would have increased GranCare's revenues by approximately 19 percent and will significantly expand GranCare's pharmacy operations.
 The acquisition is structured as a pooling-of-interest involving the exchange of GranCare common stock and stock options for CompuPharm's equivalent equity securities. In addition, GranCare will assume and refinance approximately $16 million of CompuPharm's outstanding long- term debt. The exact number of GranCare shares and options to be issued in the merger would be within a predetermined range based upon the average trading price of GranCare's common stock determined prior to closing.
 The closing is conditioned upon the approval of shareholders of both companies and the expiration of the waiting period under the Hart-Scott- Rodino Antitrust Improvements Act of 1976, among other matters. GranCare intends to file a registration statement and proxy materials with the Securities and Exchange Commission with respect to its common stock to be issued in the merger and the two companies' shareholders meetings.
 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 $211 million and net income of $6.2 million, or $.59 per share, for the six months ended June 30, 1993.
 -0- 8/24/93
 /CONTACT: Gene Burleson or Catherine Greany of GranCare, 310-645-1555; or Craig Parsons or Cecilia Wilkinson of Pondel Parsons & Wilkinson, 310-207-9300, for GranCare/
 (GC)


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

LM-JL -- LA006 -- 5329 08/24/93 09:02 EDT
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Publication:PR Newswire
Date:Aug 24, 1993
Words:475
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