List of Deals
- 1971 1,000,000 shares common stock (par value $0.35 per share)
- 1972 8.35% sinking fund debentures due April 15, 1997
Daylin, Inc., was established in Los Angeles in June 1960 as Dorena Enterprises, Inc. In the first years of operation it owned retail outlets selling pharmaceuticals, sundries, and other products. In October 1964 Dorena changed its name to Daylin, Inc., and went public. Like many other drugstore chains of this time such as Walgreens, Thrifty Drug Stores, and People's Drug Stores, the company grew quickly. One reason for this growth was the establishment of Medicare and the expansion of hospital insurance coverage. From 1964 to 1965, sales grew from $18.1 million to $31.3 million while net income grew from $762 thousand to $1.0 million.
Over the next few years the company pursued an aggressive acquisitions strategy that included other drug store chains and retailers of other types of merchandise.
In early 1966 Daylin acquired a chain of seven DISCO discount department stores located in California and Oregon. In late 1967 it acquired Wonder World Stores, and in early 1968 Daylin purchased United Import Stores, Glenn N. King Company, and Sherry Pharmaceutical Company for cash, notes, and debentures. In 1968 Daylin bought Angels Home Improvement Center Companies and London Drugs Companies for common stock. That same year it also added Elliott's Drug Stores of Savannah, Georgia, a chain of eleven drug stores and twenty-two health and beauty aid stores.
Daylin made several acquisitions in 1969. In March it added Diana Stores Corporation through a stock exchange. In May it acquired Handy Dan, a Texas-based home-improvement chain, Terminal Testing Laboratories of Los Angeles, a food and drug testing company, and United Silver & Cutlery Company, an importer of housewares and giftwares. Lastly Daylin bought 53 percent of Great Eastern Linens, a merchandiser in New Jersey. Dylan purchased the remaining interest in September 1971.
In 1970 Daylin acquired Family Wholesalers, Inc., of Paterson, New Jersey, an operator of fifty-eight leased departments in discount stores. Daylin added two other operators in similar lines of business later that year: David Lechter Distributors and Western Big Wheel.
Daylin achieved sales of $340 million in 1970, a ten-fold increase in five years.
Daylin made a number of aggressive acquisitions in 1971. In March it bought five companies: H.C. Enterprises, Inc., Happy Customers, Inc., Auto Fair, Inc., Wonder Auto, Inc., and WAPCO, Inc. It added Great Eastern Linens of Totowa, New Jersey in May, and in July it acquired Griffin-Hasson Laboratories of Los Angeles. In September Daylin bought Lamport Company, a distributor of over-the-counter fabrics such as double knits. In October 1971 it added Floyds Discount Department Stores, a chain of eight stores in the New York area, and lastly, in December it bought F.E. George & Son, Inc., wholesalers to building trades, and purchased a 51 percent interest in Belvac International Industries. In 1972 it added Alec, Inc., of California, an operator of five discount department stores, Merchandise Alliance Corporation, and a 50 percent interest in Thrift Builders Supply Home Improvement Centers of Arizona.
By 1972 Daylin was a national retail chain based in Beverly Hills, California, employing 2,650. It had 525 sales locations in 38 states, Puerto Rico, and Canada that served the drug, medical, hard goods, home improvement, and apparel markets. In 1972 sales were $481.1 million with net income of $9.6 million, up from $370.2 million in sales and net income of $7.2 million in 1971.