Walgreens Boots Alliance and Rite Aid to sell 865 Rite Aid stores to Fred’s
Walgreens Boots Alliance and Rite Aid have agreed to sell 865 Rite Aid stores to Fred’s for $950 million.
The move is in response to concerns raised by the Federal Trade Commission in its review of the proposed acquisition of Rite Aid by Walgreens Boots Alliance announced in October 2015.
If approved by the FTC, the divestiture would make Fred’s Pharmacy one of the largest drugstore chains in the US with significant presence in the South and on the East and West Coasts. Specific locations of the stores to be divested will be announced upon FTC approval of the Walgreens Boots Alliance and Rite Aid merger.
Walgreens Boots Alliance said it is in discussions with the FTC regarding the transaction and is working to complete the acquisition in early 2017.
Under the terms of the agreement, Fred’s Pharmacy would acquire 865 Rite Aid stores and certain assets related to store operations, and expects to continue to employ all store employees and some field and regional staff. Fred’s Pharmacy would continue to operate the acquired stores under the Rite Aid banner during a transition period.
“We are pleased to have found an experienced pharmacy operator for these stores,” said Walgreens Boots Alliance executive vice chairman and chief executive Stefano Pessina. “With this agreement, we are moving ahead with important work necessary to obtain approval of our acquisition of Rite Aid. We look forward to continuing to provide our customers and patients with the highest level of care and attention.”
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