OW WAREHOUSE TO BE ACQUIRED BY OFFICEMAX /REPEATING FROM YESTERDAY FOR POINTS NEEDED/
OW WAREHOUSE TO BE ACQUIRED BY OFFICEMAX
/REPEATING FROM YESTERDAY FOR POINTS NEEDED/
VIRGINIA BEACH, Va., March 25 --OW Office Warehouse, Inc. (NASDAQ: OWWH), a 46-store office products superstore chain, today announced it has entered into a definitive agreement to be acquired in a cash merger by OfficeMax, Inc., of Cleveland, a 93 percent-owned unit of K mart Corporation (NYSE: KM).
Shareholders will receive $11 per share in cash in the merger, following approval by OW Office Warehouse shareholders and any required government approvals.
OW Office Warehouse was founded in 1988 by Bernard Kossar, the company's chairman and chief executive officer, and has grown to be the nation's fifth largest office products superstore chain, with stores in 25 markets in 12 states. Kossar, who owns shares having a majority of the company's voting rights, has agreed to vote his shares in favor of the merger.
OfficeMax currently operates approximately 85 superstores similar to OW's in 38 markets in 17 states, from Boston to Salt Lake City, Utah; most of its stores are in the Midwest. Late last year, K mart Corporation increased its holdings in OfficeMax from 22 percent to 93 percent. OfficeMax has announced an expansion program under which it has stated that it intends to increase the number of its stores to approximately 140 by January 1993.
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/CONTACT: Bernard R. Kossar, chairman, or R. Michael Rouleau, president, 804-671-2300, both of OW Office Warehouse; Orren F. Knauer of K mart, 313-643-1040; or Michael Feuer, president of OfficeMax, 216-766-2419/
(OWWH KM) CO: OW Office Warehouse Inc.; OfficeMax Inc. ST: Virginia, K mart Corporation IN: REA SU: TNM252 03-25-92 15:04 EST SM -- NY058 -- 1958 03/26/92 12:13 EST