KRELITZ INDUSTRIES ANNOUNCES BUSINESS CHANGES
KRELITZ INDUSTRIES ANNOUNCES BUSINESS CHANGES MINNEAPOLIS, Aug. 14 /PRNewswire/ -- Krelitz Industries, Inc.
(NASDAQ: KRLZ) announced today the termination of the service agreement between Twin City Wholesale Drug Company, a division of the company, and Voluntary Hospitals of America (VHA), effective Nov. 30, 1992.
Net sales to this customer group were $45,181,000, or 18 percent of consolidated sales, for the fiscal year ended May 2, 1992. Because of the competitive pricing VHA had obtained from the company, the reduction in interest expense associated with financing this business and actions being taken to reduce costs, the company anticipates it will be able to minimize the impact of the loss of this business. The company has been negotiating terms and conditions of its existing bank line of credit. The parties have reached an agreement in principle and final documents are expected to be executed shortly. Under the proposed agreement, the company will continue to have available a $24,000,000 line of credit which will bear interest at prime plus 1.5 percent through May 1995. Management anticipates that this line of credit will be sufficient to finance future operations. Krelitz Industries, Inc. is a large independent drug wholesaler based in the upper Midwest. The company also distributes general merchandise and develops and markets computerized pharmacy management and point of sale systems. The company's common stock is traded nationally over the counter under the NASDAQ symbol: KRLZ. -0- 8/14/92 /CONTACT: Barry M. Krelitz of Krelitz Industries, 612-339-7401./ (KRLZ) CO: Krelitz Industries ST: Minnesota IN: MTC SU:
KH -- MN016 -- 0189 08/14/92 16:57 EDT
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|Date:||Aug 14, 1992|
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