E. F. Hutton Subsidiary to Buy Purolator

NEW YORK — The board of Purolator Courier Corp., the small package express delivery firm that lost $57.6 million last year, has agreed to a takeover by a wholly owned subsidiary of the E. F. Hutton Group Inc.

Purolator will merge with PC Acquisition Inc., a corporation organized specifically for the takeover by subsidiary E. F. Hutton LBO Inc., Warren Isdall, E. F. Hutton LBO president, said after Saturday’s agreement.

Isdall said E. F. Hutton was prepared to invest up to $279 million to purchase stock and refinance debts for Purolator. Discussions on the takeover began at the end of December, he said.

Purolator stock closed Friday at 35 1/8 on the New York Stock Exchange, up 3 3/8 from the previous day’s close. Isdall said all Purolator stockholders would be offered $35 a share for their stock, and said E. F. Hutton intends to purchase 83 percent of the company’s common stock.

Once the merger is completed, the company will continue operating under the name of Purolator Courier Corp., and PC Acquisition will be dissolved, he said. There will be no change in management at Purolator and Chief Executive William Taggart will remain in his post, Isdall said.

“This is very definitely a joint effort,” said Isdall. “But the people who manage and run the corporation will be the same.”

Purolator stockholders will be offered the option to reinvest in the new corporation at a reduced rate following the purchase of their stock, Isdall said.

Purolator lost $57.6 million last year on revenues of $841.4 million, and blamed the loss on poor performance at its U.S. Courier Division, which handles domestic package transport.

Fourth-quarter losses were $21.7 million on revenues of $210.8 million, a per-share loss of $2.84. The 1986 per-share loss was $7.54.

Late last year, Purolator was the subject of acquisition rumors involving Emery Air Freight Corp. of Wilton, Conn., which denied it had any interest.