News

Walgreens, Rite Aid trim store purchase deal to $4.38B

Written by The Associated Press | Sep 19, 2017 10:56 AM
rite_aid_philly.jpg

Photo by AP Photo/Matt Rourke, File

(Undated) -- Walgreens and Rite Aid have finally devised a deal between the nation's largest and third-largest drugstore chains that will get past antitrust regulators.

The companies said Tuesday that they have Federal Trade Commission clearance for a slimmer version of a store-purchase agreement announced in June. Walgreens will now spend $4.38 billion on 1,932 stores, three distribution centers and inventory.

The drugstore chains had said earlier this summer that Walgreens planned to spend about $5.18 billion on 2,186 stores.

That deal marked a step down from Walgreens' initial plan to take over Camp Hill, Pennsylvania-based Rite Aid Corp. for $9.4 billion. That plan spent a couple of years in regulatory review before the companies abandoned it.

Deerfield, Illinois-based Walgreens Boots Alliance Inc. says the latest deal should be completed by spring.
Rite Aid said it will use proceeds from the sale to reduce debt and strengthen its balance sheet. The company will be left with approximately 2,600 stores, six distribution centers and its pharmacy benefit manager.

Walgreens will convert the acquired stores, which are primarily in the Northeast and South, to the Walgreens brand over time. It currently operates more than 13,200 stores worldwide, including nearly 8,200 drugstores in the U.S. and the Caribbean.

An earlier story appears below. 

(Undated) -- Walgreens and Rite Aid have finally devised a combination of the nation's largest and third-largest drugstore chains that will get past antitrust regulators.

The companies say they have Federal Trade Commission clearance for a slimmer version of a store-purchase agreement announced in June. Walgreens will now spend $4.38 billion on 1,932 stores, three distribution centers and inventory.

The drugstore chains had said earlier this summer that Walgreens planned to spend about $5.18 billion on 2,186 stores.

That deal marked a step down from Walgreens' initial plan to take over Cumberland County-based Rite Aid Corp. for $9.4 billion. That deal spent a couple of years in regulatory review before the companies abandoned it.

Deerfield, Illinois-based Walgreens Boots Alliance Inc. says the latest deal should be completed by spring.

Published in News

Tagged under , , , , , , , ,

back to top

Give Now

Estate Planning

Support for WITF is provided by:

Become a WITF sponsor today »

Smart Talk

National Edward R. Murrow Awards

DuPont Columbia Awards

Support Local Journalism

Latest News from NPR

Support for WITF is provided by:

Become a WITF sponsor today »