ALLOU PURCHASE OF M. SOBOL ADDS OVER $20 MIL. IN Rx DISTRIBUTION SALES
ALLOU PURCHASE OF M. SOBOL ADDS OVER $20 MIL. IN Rx DISTRIBUTION SALES to Brentwood, N.Y.-based Allou Health & Beauty Care's mix of branded H&BAs, cosmetics, fragrances and nonperishable food items. Under an agreement announced March 1, Allou will acquire M. Sobol, a privately owned distributor of branded prescription drugs, for $1.6 mil. M. Sobol had sales of $21.6 mil. in fiscal 1992 (ended June 30) and sales of approximately $11 mil. through the first half of fiscal 1993. Through nine months to Dec. 31, Allou posted fiscal 1993 revenues of $121.1 mil. and net income of $2.2 mil. Under the acquisition agreement, Allou will make a cash down payment of $250,000, followed by installment payments for seven years. Allou noted that "this transaction should be cash flow positive in that internally generated funds from M. Sobol's operations will be sufficient to meet the annual installment obligations of Allou." Allou hopes to enhance its core business by selling H&BAs, cosmetics, fragrances and food items to M. Sobol customers. M. Sobol services about 200 customers in the Northeast. Allou said it is continuing to pursue opportunities to purchase distributors of branded H&BA items outside the Northeast. The company has been seeking such acquisitions since last autumn. M. Sobol is headquartered in Hauppauge, N.Y. where it has a 1,000 sq. ft. distribution facility. Founded in 1928, the company has six employees and is headed by Simon Mandell Sobol. Allou said it plans to retain the firm's employees and that Sobol has agreed to continue as president of the business following the acquisition.
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