I don't have any files to test with but this should work.
snb all I got with your code was a list of txt files in that directory. Not all txt files appended into one.
Sub combine() ' Find all the text files in folder to be processed myfolder = "ABC"
myfile = Dir(myfolder & "*.txt")
If Len(myfile) = 0 Then Exit Sub ' no txt files found
Open myfolder & "newfile.txt" For Append As 2
Do While Len(myfile) > 0
Open myfolder & myfile For Input As 1
filestr = Input(LOF(1), #1)
Close 1
'remove first line
filestr = Mid(filestr, InStr(filestr, vbNewLine) + 2)
Print #2, Left(AllTheFile(1), 7) & ">"
'get the rest of the file
filestr = Mid(filestr, InStr(filestr, vbNewLine) + 2)
Print #2, filestr
myfile = Dir
Loop
Close 2
End Sub