Barnes & Noble agrees to buy Ingram

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Barnes & Noble agreed Nov. 6 to buy Ingram Book Group, a subsidiary of Ingram Industries, for $600 million -- $200 million in cash and $400 in stock.

One of the largest book distributors in the country, Ingram will expand Barnes & Noble's distribution network with 11 distribution centers. With the addition, the book giant said it would be able to deliver books overnight to most U.S. consumers., a joint venture from Barnes & Noble and Bertelsmann AG, will also profit from enhanced distribution network.

Ingram is also major book supplier to arch rival, which issued a statement stressing its diversity of suppliers. " Our long-term strategy has been to diversify our supplier base and to increase our direct purchasing from publishers," it said. "We anticipate that this trend will continue for some time to come."

Yet, also cautioned that many independent book stores rely on Ingram as their sole source of books, and this move undoubtedly raises concerns in the industry. "We hope that Ingram resolves those concerns with a strong commitment to treating all bookstores fairly," added.

Copyright November 1998, Crain Communications Inc.

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