From: [c--cb--t] at [aol.com] (ComicBknet)
Newsgroups: rec.arts.comics.misc
Subject: NEWS: Diamond Buys Capital!
Date: 26 Jul 1996 14:03:38 -0400

Diamond Comic Distributors acquires Capital City Distribution

      TIMONIUM, Md.--(BUSINESS WIRE)--July 26, 1996--Diamond Comic
Distributors, Inc. President and CEO Steve Geppi announced today
that he has acquired selected assets of the Madison, Wis.-based
Capital City Distribution.
          With his Timonium, Md. headquartered company already a
recognized leader in the comic and entertainment related
distribution industry, Geppi stated that this acquisition was "a
reinvestment in the long term health of the comic industry."
          When the comic distribution business was dramatically altered in
early 1995 by the announcement that Marvel Comics would begin direct
distribution of its comics, Geppi quickly formed a strategic
alliance with Marvel's chief competitor, DC Comics and other top
comic publishers.  Consequently, Diamond was able to maintain a
healthy market position in a rapidly evolving business.  Capital
City likewise formed strategic alliances with a number of suppliers,
but was nonetheless seriously stressed by the paradigm shift in
distribution.
          The purchase price of Capital City's selected assets was not
disclosed by mutual agreement of both parties, but it is expected
that this acquisition will bring an estimated $50 million in sales
revenue to Diamond.
          Geppi disclosed that Diamond is finalizing plans to enhance
services to all of its customers.  He also indicated that comic book
specialty shops will benefit from cost savings as a result of
consolidated orders and shipments.
          "Capital City co-founders Milton Griepp and John Davis have
taken
actions which should satisfy their obligations and provide
uninterrupted service to their suppliers and customers, while also
garnering a fair rate of return on a company they worked so hard to
build over the years.  They are to be commended.  What's more, I want
to thank all of the Diamond employees who have worked so hard over
the years to put us in a position or make this acquisition, and to
give special recognition to Executive Vice President and COO Chuck
Parker and Vice President of Finance Larry Swanson for all the effort
they put into helping to negotiate this deal," Geppi concluded.

      CONTACT:
      Diamond Comic Distributors, Inc.
      Charles Degliomini, 516/248-6300

 ...---====*David LeBlanc>                     [C--cB--t] at [AOL.COM]
 Editor - Comic Book Electronic Magazine        *Email me to subscribe*
 http://members.aol.com/ComicBkNet     RIME->15    FIDO 1:322/743.1