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Sawaya Segalas News
April 2, 1997
Millbrook Distribution Services acquired by R.A.B. Holdings Inc.
Business Wire, All Rights Reserved

NEW YORK — R.A.B. Holdings Inc. ("R.A.B."), a privately-held investment company based in New York City announced today the completion of its acquisition of Millbrook Distribution Services Inc. ("Millbrook").

This acquisition will further Millbrook's strategic initiative of aggressive growth through expansion and acquisitions.

In late February, both companies announced that R.A.B. had signed a definitive agreement to purchase Millbrook from the San Francisco-based McKesson Corp. (NYSE:MCK) and that the transaction was expected to close by the end of March 1997. "While we enjoyed a strong relationship with McKesson, McKesson's decision to focus on health care supply management left Millbrook out of the queue as a growth priority," said Robert A. Sigel, president and CEO of Millbrook. "With the support and strong financial backing of R.A.B., we will move quickly to grow the business through both product line and geographic expansions as well as through acquisitions. We will continue the company's long-term strategic initiatives to grow its nonfood and specialty food businesses, as well as its third party merchandise service division, Millbrook Retail Solutions. Our new partnership with R.A.B. offers to Millbrook a combination of a focused growth plan, significant financial foundation and R.A.B.'s distribution knowledge and retail relationships."

Sigel will continue as president and CEO of Millbrook and is a partner in R.A.B. In addition, Sigel does not anticipate any changes in Millbrook's executive management.

Richard A. Bernstein, chairman and CEO of R.A.B., said, "We are in complete agreement with Bob Sigel and his management team on the strategic direction Millbrook is pursuing. We are committed to aggressive expansion of Millbrook's current capabilities and business and to seeking complementary acquisitions. Millbrook's outstanding management team, led by Bob Sigel, has built an exceptional company founded on service excellence to its customers and to supporting the distribution goals of its vendors. Millbrook is well positioned to take advantage of those segments of the market which are enjoying greater growth or which are not being aggressively serviced. R.A.B. is excited to have acquired Millbrook and we look forward to a successful, long-term relationship."

As an initial step in furthering Millbroook's strategic objectives, R.A.B. has already begun mailings to key players in the retail and vendor communities. Said Sigel, "I am pleased to see how quickly we are moving forward. This change in ownership represents an exciting growth opportunity for both Millbrook Distribution Services and Millbrook Retail Solutions."

Through affiliated entities, R.A.B. and its principals have extensive background and experience in wholesale distribution, having previously owned General Medical Corp. and Harris Wholesale Drug Co., which were among the largest U.S. distributors of medical, surgical and pharmaceutical products. R.A.B. has also previously owned Western Publishing Group Inc., the largest U.S. publisher of mass market children's books.

Millbrook Distribution Services is one of the nation's largest value added service merchandising companies, distributing health and beauty care items, general merchandise, and specialty and natural food products to more than 13,000 retail outlets in 42 states. Millbrook is headquartered in Leicester, Mass., and has annual revenues of approximately $500 million.

© 1997, Business Wire
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