D&K WHOLESALER PURCHASE OF MALONE & HYDE ASSETS

D&K WHOLESALER PURCHASE OF MALONE & HYDE ASSETS would add $40 to $50 mil. in annualized revenues to the St. Louis-based regional prescription drug wholesaler. D&K Wholesale Drug announced May 25 that it had "entered into a letter of intent to acquire selected assets" of Memphis-based Malone & Hyde, a subsidiary of Fleming Companies, Inc.

D&K will pay approximately $12.5 mil. for all of the pharmaceutical inventory of M&H's Drug Distributors Unit and all of the nonprescription inventory dedicated to the Super D chain operated by M&H, along with related accounts receivable. D&K also will assume the supply agreement between M&H and Super D, a 118- store retail drug chain based in Memphis. The purchase will be financed through borrowings under D&K's existing credit facilities, and is expected to close on June 6, D&K said.

For the year ended March 31, D&K's revenues were $211 mil. and net income totaled $374,000. The company said that 94% of its business is in prescription drugs. M&H had 1993 Rx revenues of about $75 mil. and OTC revenues of about $20 mil., primarily through its distribution to the Super D chain.

D&K was formed in 1987 as a holding company for two wholesalers, Cairo, Ill.-based Delta and Lexington, Ky.-based W. Kelly, which were run independently until last year. The publicly traded company, which raised about $4 mil. in its September 1992 initial public offering, distributes to 10 states in the Midwest and "Midsouth" regions. D&K employs over 200 people at its 45,000- square-foot facility in Cairo and its 30,000-square-foot facility in Lexington. J. Hord "Horde" Armstrong is Chairman and CEO.