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ShopKo, Phar-Mor split
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April 2, 1997: 9:41 a.m. ET
Retail and drug store chains terminate $1 billion planned merger
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NEW YORK (CNNfn) -- ShopKo Stores Inc. and retail drug store chain Phar-Mor, Inc. said Wednesday that they have called off their planned $1 billion merger.
In a joint statement the two companies cited "continuing uncertainties in consummating the transaction" as the reason for terminating the merger process but did not specify any further.
Phar-Mor and ShopKo announced the merger last September, saying they would create a holding company to be called Cabot Noble, with each of the two companies operating by themselves as subsidiaries.
They said they would now pursue their respective goals separately.
"While we continue to believe that a strategic combination would make sense, it became clear that the transaction as contemplated was not likely to be completed and that the continuing uncertainty is not in the best interests of our shareholders," said Dale P. Kramer, President and Chief Executive Officer of ShopKo Stores.
Discount store chain ShopKo is based in Green Bay, Wis. and operates 130 stores in 15 states from the Upper Midwest to the Pacific Northwest. Its ProVantage Inc. unit specializes in prescription, vision and health benefit services.
Youngstown, Ohio-based Phar-Mor has 103 retail drug stores in 18 states, concentrated around Ohio, Pennsylvania and Virginia.
--Randy Schultz
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