Walgreens Boots Alliance, the Nasdaq-listed pharmaceutical company, has obtained regulatory clearance in the United States for the acquisition of 1.932 stores (and related businesses) from Rite Aid, for a consideration of $4,375 billion in cash. The purchase agreement, modified and revised between the parties, updates the terms of the previous agreement announced in June 2017.
The points of sale that will be purchased are mainly located in the North-East and in the South of the United States. The store purchase plan is expected to begin in October; completion is expected by spring 2018. Upon completion, the stores will gradually convert to the Walgreens brand. In addition to the stores, the agreement also includes three distribution centers and associated inventories.
Walgreens Boots Alliance expects to realize more than $300 million in annual synergies within 4 years. “It is a very important moment for our company, we are excited about the opportunities this agreement offers to our customers, patients, employees and investors – he declared Stefano Pessina, Executive Vice Chairman and CEO of Walgreens Boots Alliance – We believe that the combination of the Walgreens pharmacy network and this strong portfolio of Rite Aid stores will help us achieve even more significant and sustainable growth, while allowing us to expand our reach and offer more access to affordable and cost-effective health services in more and more population centers across the United States. We are confident about the journey ahead and eager to work together to build the future of healthcare, and to make the most of the potential these outlets bring to our network."
