Walgreens, Rite Aid Call Off Merger Agreement, Announce $5.2 Billion Portfolio Sale

Deerfield, Ill. — The merger between Walgreens Boots Alliance Inc. and Rite Aid Corp. has been terminated. Instead, Walgreens will purchase 2,186 stores and three distribution centers from Rite Aid for $5.2 billion.

The previous merger agreement was unveiled in October 2015. In December 2016, Fred’s Pharmacy signed an agreement with Walgreens and Rite Aid to purchase 865 stores. Both of these agreements have been terminated, and Walgreens will pay Rite Aid the $325 million termination fee.

Deerfield-based Walgreens will begin acquiring stores and related assets on a phased basis over a period of approximately six months, and intends to convert acquired stores to the Walgreens brand over time. Walgreens expects synergies from the new transaction to be in excess of $400 million.

SOURCE: Heartland Real Estate Business

 

More News