Discount mail-order pharmacy to buy Mail-Rx for $8.1 million

April 23, 1993|By Ted Shelsby | Ted Shelsby,Staff Writer

Medi-Mail Inc., a San Diego-based national discount mail-order pharmacy, has reached a definitive agreement to acquire Mail-Rx, a privately held Owings Mills company, for $8.1 million.

M. Burdet Merryman, president and chief executive of Medi-Mail, announced the purchase agreement during a meeting with industry analysts at the Westergaard MED-TECH Conference in New York.

Mr. Merryman said in a telephone interview that the Baltimore County company "will provide us with an East Coast facility and the capacity to serve on a face-to-face basis our East Coast accounts."

In turn, he said, Medi-Mail could serve the West Coast accounts of Mail-Rx. Mr. Merryman said the acquisition will speed deliveries and make the combined operations more efficient.

Mr. Merryman said Mail-Rx employs between 25 and 30 workers in Owings Mills "and we don't really anticipate any significant change in employment for the time being. We intend to leave the operation pretty much status quo."

Jerry Kempler, president of Mail-Rx, will serve as a vice president of Medi-Mail, Mr. Merryman said, "and we anticipate him playing a significant role in the ongoing business."

"Eventually, he added, "we look to expand the facility and add a number of employees over the next two years."

The closing of the sale is expected to take place in two weeks. After it is complete, Mr. Merryman said, Medi-Mail would have a total of about 150 employees at its operations in Owings Mills, San Diego, Phoenix and Las Vegas.

Mail-Rx had annual revenue of $14 million, which is expected to double Medi-Mail's sales, which Mr. Merryman said would be about $28 million after the purchase.

Medi-Mail shares, traded on Nasdaq, closed at $2.8125, down 6.25 cents.

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