Northern Drug/Krelitz

Executive Summary

Northern Drug company will pay an estimated $4 mil.-$5 mil. to acquire the Minneapolis wholesaler under an agreement in principle announced June 18. Privately held Northern Drug of Duluth, Minn. is controlled by the Goldfine family and has annual sales of approximately $50 mil. to 250 accounts. Krelitz had nine-month sales of $161.5 mil. in the period ended Jan. 31, down from $187 mil. in the same period the year before. The wholesaler lost a major account with the Voluntary Hospitals of America in November 1992. The merger is subject to approval by Krelitz shareholders; the Krelitz family controls more than 50% of the stock.