Krelitz Industries
Executive Summary
Service agreement between Krelitz' subsidiary Twin City Wholesale Drug and Voluntary Hospitals of America (VHA) will be "terminated" effective Nov. 30. The VHA agreement generated $45.2 mil. in sales for Krelitz in fiscal 1992 (ended May 2) and accounted for approximately 18% of the company's consolidated sales for the year. Because of the competitive pricing involved in the VHA deal, Krelitz predicted that it "will be able to minimize the impact of the loss of this business" through the reduction in interest rates associated with financing the VHA business and other "actions to reduce costs." Krelitz' FY 1992 sales were already expected to be flat; sales through nine months were off 4.4%. Krelitz also reported that it has reached an agreement in principle in renegotiations on the company's $24 mil. line of bank credit. In addition, Exec VP and Chief Operating Officer Dennis Allingham has left the company.
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