Walgreens Finalizes Rite Aid Purchase
After the failed merger, Walgreens gets go-ahead to purchase hundreds of Rite Aid stores.
Walgreens announced today that it has been given clearance to purchase nearly 2,000 Rite Aid stores. The purchase agreement had been subject to antitrust laws, but Walgreens has been cleared to go through with the deal.
After Walgreens failed to secure approval for its Rite Aid merger, it announced in June that it would scrap a total merger and instead commit to a smaller deal. Under this new deal, Walgreens is buying a total of 1,932 stores, and three distribution centers from Rite Aid, along with all inventory. Walgreens will pay Rite Aid $4.375 billion in cash for the deal. This is an amended version of the one announced in June, which would have seen Walgreens purchase 2,186 stores for $5.175 billion.
The stores being purchased are located mainly in the Northeast and Southern United States. The three distribution centers are located in Dayville, CT, Philadelphia, and Spartanburg, SC. Store purchases are expected to begin next month and will be completed by next spring, while the acquisition of distribution centers will not happen for at least 12 months.
