Monday March 15, 5:38 pm Eastern Time
Phar-Mor closes Pharmhouse buy
YOUNGSTOWN, Ohio, March 15 (Reuters) - Discount drugstore chain
Phar-Mor Inc. said Monday it completed its acquisition of Pharmhouse
Corp. (Nasdaq:PHSE - news), creating a drugstore chain of 138 stores in
24 states operating under the names Phar-Mor, Pharmhouse and The Rx
Place.
''We expect that this acquisition will be accretive to Phar-Mor's earnings in our first full fiscal year operating
these stores and significantly more accretive in the second full year,'' said David Schwartz, Phar-Mor's
president and chief operating officer, in a statement.
Phar-Mor said corporate-wide consolidation will lead to reduced administrative and operating costs.
Overlapping operations will be phased out and the Pharmhouse headquarters in East Brunswick, N.J., will be
consolidated with Phar-Mor's headquarters in Youngstown, Ohio, during the next 90 days, according to the
company.
Phar-Mor said no store closings are currently expected.
Under the deal announced last year, Phar-Mor paid about $33.51 million for Pharmhouse, including about
$7.51 million in cash and the assumption of about $26.0 million in debt. Phar-Mor said it will pay each
Pharmhouse shareholder $2.88 per share in cash.
Phar-Mor shares were trading at 6-1/2 on the Nasdaq, down 1/8 on the day. The stock has a 12-month high
of 11-3/4 and a 12-month low of 5-1/4.
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