McKesson Corp. completes sale of service merchandising unit

Business Wire, April 2, 1997

SAN FRANCISCO--(BW HealthWire)--April 2, 1997--McKesson Corp. (NYSE:MCK) today announced that it has completed the sale of Millbrook Distribution Services Inc., its service merchandising unit, to R.A.B. Holdings, Inc., a privately held investment company. Terms of the transaction were not disclosed. However, McKesson estimated that after-tax proceeds would approximate the book value of the business, and that the divestiture would not be dilutive to McKesson shareholders.

"Under R.A.B. Holdings' ownership, Millbrook will expand its business through improved operational efficiencies, geographic expansion and by making strategic acquisitions," said Millbrook President and CEO Robert A. Sigel, who will remain with the company as president and CEO. Millbrook is one of the nation's largest distributors of health and beauty care, general merchandise and specialty food products to super markets and other retail outlets, servicing over 15,000 stores in 42 states. The company will continue to be headquartered in Leicester, Mass.

McKesson is the largest health care supply management company in North America through its U.S. health care businesses, its Canadian subsidiary, Medis Health and Pharmaceutical Services, and its minority interest in Mexico's Nadro, S.A. With its recent acquisition of General Medical Inc., the largest multi-market distributor of medical-surgical supplies, McKesson has further extended its leadership in health care supply management. The company also owns McKesson Water Products, a leading U.S. provider of pure drinking water. -0-

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CONTACT: McKesson Corporation, San Francisco

Janet Bley, 415/983-9357