<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 31, 1996
ALCO STANDARD CORPORATION
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(Exact name of registrant as specified in its charter)
OHIO File No. 1-5964 23-0334400
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(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification
incorporation) Number)
P.O. Box 834, Valley Forge, Pennsylvania 19482
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Registrant's telephone number, including area code: (610) 296-8000
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Not Applicable
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
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On July 31, 1996, at an investors' conference in New York City, the
Registrant outlined long-term growth goals for IKON Office Solutions and
Unisource Worldwide, Inc. The two businesses will begin operating as
independent publicly-owned companies in January 1997.
John Stuart, Chairman and Chief Executive Officer of the Registrant,
stated that IKON is targeting 25-30 percent annual growth in revenues,
and 35-40 percent annual growth in operating income and earnings per
share through the year 2000.
Ray Mundt, recently named Chairman and Chief Executive Officer of
Unisource, stated that Unisource's revenues and operating income in
fiscal 1996 will be about equal to 1995 levels, excluding corporate
expenses. Longer term, Unisource's annual goal for revenue growth is
10-12 percent through the year 2000. Unisource's goal for earnings per
share is 7-10 percent in fiscal 1997 and 15-20 percent thereafter.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
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(c) Exhibits.
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Press Release dated July 31, 1996
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ALCO STANDARD CORPORATION
By: /s/ Michael J. Dillon
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Michael J. Dillon
Vice President and Controller
Dated: July 31, 1996
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Index to Exhibit
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(28) Press Release Dated July 31, 1996
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News Release
Charles R. Tilden Suzanne C. Shenk Martha A. Buckley
Vice President, Manager, Investor Director, Corporate
Corporate Affairs Relations Communications
610-993-3608 610-993-3526 610-993-3609
ALCO STANDARD HOSTS INVESTORS' CONFERENCE--
OUTLINES LONG-TERM GROWTH GOALS
Valley Forge, Pennsylvania, July 31, 1996--Alco Standard said today it
expects IKON Office Solutions and Unisource Worldwide, Inc. to deliver
increased earnings in fiscal year 1997 and through the end of the decade. At
an investors' conference in New York City, Alco reviewed the performance goals
for its two businesses, which will begin operating as independent publicly-
owned companies in January, 1997.
Alco previously announced it would spin off Unisource through a tax-free
distribution of Unisource stock to Alco shareholders, and shortly thereafter,
change Alco's name to IKON Office Solutions.
John Stuart, Chairman and Chief Executive Officer of Alco Standard, said,
"IKON is targeting 25-30 percent annual growth in revenues. We expect both
operating income and earnings per share to increase at a yearly rate of 35-40
percent through the year 2000. We think these are realistic goals, given our
anticipated rate of internal growth and pace of acquisitions."
The company has already stated it expects about a 40 percent increase in
operating income at IKON in fiscal year 1996 over 1995, excluding corporate
expenses.
Ray Mundt, recently named Chairman and Chief Executive Officer of
Unisource, said that he expects Unisource's revenues and operating income in
fiscal 1996 to be about equal to 1995 levels, excluding corporate expenses.
-more-
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"Longer-term, we have established an annual goal of 10-12 percent revenue
growth through the year 2000," Mundt said. "With that level of revenue
growth, we expect to increase operating income 15-20 percent annually during
these years. Our goal is to grow earnings per share 7-10 percent in fiscal
1997 and 15-20 percent annually after that." Mundt explained that the growth
in earnings per share will be lower in 1997 because of an increase in share
base and significantly higher interest expense associated with higher debt
levels once Unisource pays a tax-free dividend to Alco.
Stuart said he will recommend next week to Alco's Board of Directors a 60
percent/40 percent split of Alco's debt between Unisource and IKON,
respectively, when the two companies separate at the beginning of 1997. "I
will ask our Board to approve a one-time $600 million dividend to be paid by
Unisource to Alco," he said. Proceeds from the Unisource dividend will be
used to reduce IKON's debt to just over $400 million. Unisource's debt will
increase to about $700 million.
Alco's Board of Directors will also be asked to approve common stock
dividends for both companies. Stuart will propose a $.16 per share annual
dividend on IKON stock and a $.40 per share annual dividend on Unisource
stock. "We have paid a dividend to our shareholders every year since Alco was
founded and we are committed to continuing that record," he said.
Alco Standard, headquartered in Valley Forge, Pennsylvania, operates IKON
Office Solutions and Unisource. IKON is one of the world's leading office
technology solutions companies with operations in North America and Europe.
Unisource is the largest marketer and distributor of paper and supply systems
in North America.
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