Medicine Shoppe to purchase Medicap

Wednesday, December 3, 2003

Staff and wire reports

Medicine Shoppe International Inc., a chain of retail pharmacies, will acquire Medicap Pharmacies Inc. in a deal announced Tuesday.

Financial terms were not disclosed. The deal was expected to close by the end of the year.

Medicine Shoppe, based in St. Louis, is part of Cardinal Health Co. Medicine Shoppe operates about 1,000 pharmacies in the U.S. and 250 in six other countries. Des Moines, Iowa-based Medicap operates 179 pharmacies in 33 states. Medicine Shoppe and Medicap pharmacies are independently owned by franchisees.

A Medicine Shoppe and Medicap Pharmacy sit within 400 yards of each other on Kingshighway in Cape Girardeau.

The stores' respective owners -- Jim Crain and Ben Tally -- don't expect to see too many changes from the aquisition.

"It didn't surprise me, but it's still unsettling when things change," said Tally, who has owned Medicap Pharmacy for 14 years. Medicine Shoppe has been in business in Cape Girardeau for 25 years.

"It isn't supposed to impact us because we're independently owned," said Tally. "The businesses are supposed to remain two separate entities, with changes at the corporate level, not locally."

Medicap, which is privately held, will operate as a wholly owned subsidiary of Medicine Shoppe International, company officials said.

Medicap had sales of $350 million for its latest fiscal year. Medicine Shoppe sales were $2.2 billion for the fiscal year ended June 30, spokesman Ron Cook said.

Staff writer Callie Clark contributed to this report.

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