ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Saturday, February 24, 1996 TAG: 9602260004
SECTION: BUSINESS PAGE: A-6 EDITION: METRO
Merger could help Salem supplier
Cordis Corp. shareholders gave approval Friday to a merger with Johnson & Johnson, a $1.8 billion deal that could benefit a Roanoke Valley company that supplies both companies.
Cordis is a leader in angio-graphy and angioplasty (balloon catheters). Its business is being combined with that of Johnson & Johnson Interventional Systems, which markets an expandable stent or support that helps keep an artery from reclosing after an angioplasty procedure.
The combined businesses, to be called Cordis, will be based in Miami.
As part of the merger agreement, 1.1292 shares of Johnson & Johnson stock will be exchanged for each share of Cordis stock for a total value of approximately $1.8 billion.
If the combined companies grow as projected, it could benefit Nobel-Met Ltd. of Salem, which supplies both with marker bands, which go inside the catheter's balloon. The metal marker bands show up on X-rays, so a surgeon can track them and know when to inflate the balloon.
"It's early to say," said John Freeland, president of Nobel-Met. "I hope what it will do is improve their strategic position and allow them to come to market with a broader product offering and strengthen sales. Then our sales to them would go up."
Nobel-Met, which started in 1989, had gross sales close to $5 million last year.
- Staff report
Kmart shutting 15 more stores
TROY, Mich. - Kmart Corp. said Friday it will close 15 stores by the end of May and eliminate 1,300 jobs as part of an ongoing effort to boost profits by shuttering poorly performing outlets.
They are five stores in California, three in Texas, two in Michigan and one each in Maine, New Jersey, Ohio, Oregon and Rhode Island.
Kmart has posted disappointing earnings for 11 consecutive quarters. In recent years, the company has shed hundreds of aging and unprofitable stores and eliminated thousands of jobs in an effort to cut costs.
The company has faced stiff competition for years from Wal-Mart Stores Inc., the Target chain of Dayton Hudson Corp. and other mass merchandisers and regional discounters.
Kmart's sales and profits have lagged partly because its aging stores have been unable to compete with newer branches opened by its competitors. It has remodeled many of its aging stores to improve their prospects.
The Troy-based company operates 2,163 Kmart stores and 167 Builders Square outlets in the United States and has operations in several other countries.
- Associated Press
Cox buying Carol Wright
ATLANTA - Cox Enterprises Inc. said Friday it plans to buy two direct-mail companies from Donnelly Marketing Inc. for an undisclosed amount. Cox Enterprises is primary owner of Cox Communications Inc., which has cable television operations in the Roanoke Valley.
The companies to be acquired are Carol Wright Sales Inc. and Carol Wright Consumer Promotions Inc., which include Val-Pak Direct Marketing Systems Inc. The Carol Wright companies, based in Stamford, Conn., have more than 1,500 employees.
- Associated Press
Don't expect candid references
RICHMOND - Employers won't get legislative relief this year from legal concerns over giving references about former employees, because the General Assembly has postponed action on a related piece of legislation until 1997.
Del. Richard Cranwell, D-Vinton, introduced a bill at the request of the Roanoke Regional Chamber of Commerce to prevent employers who give candid references from facing civil suits. At present, employment experts have said, many employers fear giving references will invite litigation, so they often say little or nothing, depriving good employees of the support they may need to land a better job and enabling unsatisfactory employees to hide negative records.
The legislature is placing this and a related bill in a study committee with plans to re-examine them next year, said Bud Oakey, a chamber lobbyist.
- Staff report
Mercedes-Benz recalling cars
DETROIT - Mercedes-Benz of North America is recalling 44,114 of its 1994-95 C-class sedans to replace a secondary hood latch that could fail and cause the hood to open, blocking the driver's view.
Mercedes said the problem might occur if the hood is not closed properly after the secondary latch hook has been damaged in an accident.
- Associated Press
Bankruptcies ...
Three bankruptcies with business affiliations have been filed in the U.S. Bankruptcy Court for Western Virginia at Roanoke. All of them are personal bankruptcies that the court listed as businesses because they have commercial connections and could be of interest to business creditors and customers.
Craig D. Nixon and Rosemary G. Nixon of Hillsville filed for liquidation, listing assets of $95,120 and liabilities of $173,652. Rosemary Nixon formerly operated Chick Home Services.
Nancy Shupe DeHart of Roanoke, a hairdresser, filed for liquidation with assets of $65,400 and liabilities of $176,761.
Dorothy M. Childress of Roanoke, a self-employed nurse, filed for a wage-earner plan for repayment of debts. She had assets of $18,773 and liabilities of $35,945.
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