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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: April 22, 1996
Date of Earliest Event Reported: April 14, 1997
H&R Block, Inc.
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(Exact name of registrant as specified in its charter)
Missouri
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(State or other jurisdiction of incorporation or organization)
I-6089
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(Commission File Number)
44-0607856
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(I.R.S. Employer Identification No.)
4400 Main Street, Kansas City, Missouri 64111
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(Address of principal executive office, including zip code)
(816) 753-6900
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(Registrant's telephone number, including area code)
ITEM 5. OTHER EVENTS
On April 14, 1997, H&R Block, Inc. ("Block") and Block Financial
Corporation ("BFC"), the financial services subsidiary of Block, entered into an
agreement with Fleet Financial Group, Inc. ("Fleet") for the purchase by BFC of
all of the stock of Option One Mortgage Corporation for $190 million in cash,
subject to closing and post-closing adjustments. The transaction was subject to
the approvals of the boards of directors of Block and BFC. Such approvals were
obtained on April 16, 1997, and the transaction was announced by Block that day.
The transaction is expected to be completed by the end of June and is subject to
regulatory approval and other customary closing conditions.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial statements of businesses acquired.
Not applicable.
(b) Pro forma financial information.
Not applicable.
(c) Exhibits.
99.1 Press Release, dated April 16, 1997.
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SIGNATURES
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 hereunto duly authorized.
H&R BLOCK, INC.
By:/s/ Frank L. Salizzoni
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Frank L. Salizzoni
President and Chief Executive Officer
Date: April 22, 1997
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EXHIBIT INDEX
Exhibit No. Description of Exhibit
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99.1 Text of press release issued by H&R Block, Inc. on
April 16, 1997
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[CORPORATE LOGO] H&R BLOCK
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NEWS RELEASE
For further information:
Linda McDougall
816-932-7542
H&R BLOCK TO PURCHASE OPTION ONE MORTGAGE COMPANY
FOR RELEASE WEDNESDAY, APRIL 16, 1997
KANSAS CITY, Mo. - H&R Block Inc. (NYSE:HRB) today announced that Block
Financial Corporation, its financial services subsidiary, has agreed to purchase
the stock of Option One Mortgage Corporation from Fleet Financial Group for $190
million in cash, subject to closing and post-closing adjustments. The
transaction is expected to be completed by the end of June and is subject to
regulatory approval and certain other conditions.
Option One, based in Santa Ana, Calif., is a major originator of sub-prime
mortgage loans with more than $1 billion in originations last year. It mainly
originates and services one-to-four family residential mortgage loans
nationwide.
"H&R Block's strategic vision is to be the preferred tax and financial
partner for our customers. With the addition of Option One, we've greatly
accelerated our entry into the financial services market," said Frank L.
Salizzoni, president and chief executive officer of H&R Block Inc.
"With its network of more than 5,000 mortgage brokers in 46 states, Option
One provides an important channel that compliments our current wholesale and
retail mortgage channels," he said. "In addition, the acquisition will add scale
to Block Financial's existing mortgage banking and servicing business."
"Block's acquisition of Option One is an excellent fit," said Michael R.
Zucchini, vice chairman of Fleet Financial Group. "We at Fleet are pleased that
Option One's successful management team will be aligned with a buyer that will
continue to support their growth and business strategies.
-more -
Option One was acquired by Fleet Financial Group in 1995 as part of its
acquisition of Plaza Home Mortgage Corporation. The company offers adjustable
rate and fixed rate products primarily to sub-prime borrowers who do not qualify
for loans that conform to traditional banking guidelines. Currently, Option One
has 41 business locations, including 11 branch offices in nine states that form
the core of a nationwide origination net work.
"Option One has a strong track record, and we look forward to working with
its management team to provide the resources necessary to expand the business,"
said William P. Anderson, president of Block Financial Corporation. "It's a good
operation with quality management that offers a service we believe many of our
existing tax customers will find attractive."
Founded in 1955, H&R Block, Inc. is a diversified company offering tax,
financial and information services. H&R block is the country's largest tax
preparation firm, servicing 14.9 million taxpayers in nearly 8,300 U.S. offices
in 1996. H&R Block Tax Services Inc. handled approximately one in every seven
returns filed with the Internal Revenue Service last year. H&R Block
International served 2.5 million taxpayers in nearly 1,400 offices in Canada,
Australia and 15 other countries and territories in 1996. Block Financial
Corporation, started in 1993, develops and provides financial services.
CompuServe Corporation provides online/Internet, business network and intranet
access services for more than 5 million home and business users worldwide.
Quarterly results and other information regarding H&R Block are available on the
company's Web page at www.hrblock.com.
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