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TAB ANNOUNCES ACQUISITION OF DATAFILE BUSINESSES IN CANADA, AUSTRALIA AND THE UNITED STATES

 PALO ALTO, Calif., Oct. 8 /PRNewswire/ -- TAB Products Co. (AMEX: TBP) announced today the acquisition from Wright Line Inc. of its Datafile businesses in Canada, Australia and the United States for approximately $6.8 million (U.S.). TAB Products acquired Wright Line of Canada Ltd. (WLC) a subsidiary of Wright Line Inc. WLC operates under the trade name Datafile, and is the leading supplier of color-coded filing systems in Canada and Australia. For its fiscal year ended Aug. 31, 1993, WLC had revenues of $17.5 million and operating profits of $1.2 million. TAB also acquired the U.S. color-coded filing business of Wright Line Inc., a business that is separate from WLC but which also operates under the trade name Datafile. The U.S. color-coded filing business of Wright Line had fiscal 1993 annual revenues in excess of $5 million.
 "We are very pleased to announce this combination of the records management industry leader in Canada and Australia with the industry leader in the United States," said Chief Executive Officer Michael A. Dering. "Datafile has excellent management talent and shares a commitment with TAB to provide the highest quality solutions in the records management industry. TAB will benefit from the strong market presence of Datafile in Canada and Australia as well as achieving greater economies of scale from both an operating and manufacturing perspective. Datafile will now have the advantage of being part of a company that is clearly focused on the records management business and has the financial resources to support growth," Dering commented.
 The acquisition was partially financed by $5 million of long-term financing provided by Prudential Capital Corp. which bears interest at a fixed rate of 6.9 percent with payments of interest only for two years and annual principal payments over the following eight years. The balance of the financing, which was provided by Bank of America, bears interest at a floating rate of prime plus 3/4 percent, is interest-only for three years at which time the principal balance is due and can be repaid at any time without penalty.
 TAB, which has headquarters in Palo Alto, manufactures and markets office filing and furniture systems which are sold worldwide. Common shares are traded on the American Stock Exchange under the symbol TBP.
 -0- 10/8/93
 /CONTACT: John W. Peth, executive vice president and COO of TAB Products, 415-852-2495; or Kevin Costello of Cameron Associates Inc., 212-644-9560, for TAB/
 (TBP)


CO: TAB Products Co.; Wright Line Inc. ST: California IN: SU: TNM

TB -- SJ001 -- 0170 10/08/93 13:00 EDT
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Publication:PR Newswire
Date:Oct 8, 1993
Words:428
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