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UNITED STATIONERS AND STATIONERS DISTRIBUTING MERGE: UNITED STATIONERS REPORTS PRELIMINARY THIRD QUARTER RESULTS

 UNITED STATIONERS AND STATIONERS DISTRIBUTING MERGE:
 UNITED STATIONERS REPORTS PRELIMINARY THIRD QUARTER RESULTS
 DES PLAINES, Ill., June 24 /PRNewswire/ -- United Stationers Inc. (NASDAQ-NMS: USTR), North America's largest wholesale distributor of office products, announced today that it has completed its acquisition of Stationers Distributing Company, a privately held general line office products wholesaler. United Stationers paid approximately $40 million in cash and 3.0 million shares of United Stationers Inc. common stock. The total transaction was valued at approximately $80 million. As a result of this transaction, approximately 18.5 million shares of United Stationers Inc. common stock will be outstanding.
 "This merger presents exciting opportunities along with unique market advantages. It allows us to immediately extend our marketing initiatives into new geographic areas. In addition, we anticipate significant synergies because of common product offerings, customers and suppliers. As a result of the merger, our shareholders will participate in the future of a company that is stronger and better positioned for long-term growth," said Joel D. Spungin, chairman of United Stationers.
 "We are pleased that David R. Smith, former chairman of Stationers Distributing, will become a director of United Stationers Inc. and that several key members of Stationers' management team will be joining us," Spungin added.
 United Stationers' sales were $951 million and net earnings were $9.9 million for its fiscal year ended Aug. 31, 1991. For the first half ended Feb. 29, 1992, United Stationers' unaudited sales were $508 million and net earnings were $6.2 million. Stationers Distributing's sales were $424 million, net earnings were $8.1 million, and shareholders' equity was $39.2 million for its fiscal year ending Dec. 31, 1991. For its first quarter ended March 31, 1992, Stationers Distributing's unaudited sales were approximately $115 million and net earnings were $2.5 million.
 United Stationers anticipates that certain one-time restructuring expenses associated with the merger will be recognized in its fourth quarter ending Aug. 31, 1992.
 William Blair & Company served as financial advisor to United Stationers in this transaction. Pittsburgh National bank is the financing agent, with The Northern Trust Company and NationsBank acting as co-agents.
 Preliminary Third Quarter Results
 United Stationers' sales for its third quarter ended May 31, 1992, reached $255 million, a 7.6 percent increase over the $237 million in the comparable year-ago quarter. Earnings per share for the third quarter will be in the range of $.22 to $.24, a 57 percent to 71 percent increase, compared to $.14 in the third quarter of Fiscal 1991. For the nine months, sales were $763 million, up 5.1 percent over the comparable year-ago period. Earnings per share for the nine months will be in the range of $.62 to $.64, compared to $.46 for the first nine months of Fiscal 1991.
 United Stationers currently makes more than 25,000 items available substantially within 24 hours through 65 distribution points.
 -0- 6/24/92
 /CONTACT: Joel D. Spungin, or Kathleen S. Dvorak, both of United Stationers Inc., 708-699-5000/
 (USTR) CO: United Stationers Inc.; Stationers Distributing Company ST: Illinois IN: SU: TNM ERP


LR -- NY067 -- 3477 06/24/92 17:08 EDT
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Publication:PR Newswire
Date:Jun 24, 1992
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