Walgreens Set to Purchase Rite Aid

By TIM MORAN (Patch Staff)

Walgreens Boots Alliance confirmed Tuesday it will acquire the Rite Aid Corp. for $17.2 billion in a deal that unites the nation’s second and third largest drugstore chains.

The “definitive agreement” means Deerfield-based Walgreens will acquire all outstanding shares of Rite Aid for $9 per share in cash, totaling $17.2 billion.

“The combination of Walgreens Boots Alliance and Rite Aid creates a further opportunity to deliver a high-quality retail pharmacy choice for U.S. consumers in an evolving and increasingly personalized healthcare environment,” according to a statement issued by Walgreens Tuesday afternoon.

The purchase price represents a premium of 48 percent to the closing price per share” on Tuesday, the day before the agreement was made.

Walgreens has more than 13,200 stores in 11 countries and before the merger had been the second largest drugstore chain behind CVS.

“Today’s announcement is another step in Walgreens Boots Alliance’s global development and continues our profitable growth strategy. In both mature and newer markets across the world, our approach is to advance and broaden the delivery of retail health, wellbeing and beauty products and services,” said Walgreens Boots Alliance Executive Vice Chairman and CEO Stefano Pessina. “This combination will further strengthen our commitment to making quality healthcare accessible to more customers and patients.

Rite Aid, based in Camp Hill, Pennsylvania, has about 4,600 drugstores in 31 states. They had been the third largest.

“Joining together with Walgreens Boots Alliance will enhance our ability to meet the health and wellness needs of Rite Aid’s customers while also delivering significant value to our shareholders,” said Rite Aid Chairman and CEO John Standley.

According to the WSJ, “Putting their drugstore networks together could yield cost savings at a time when the companies have been beset by drug-cost inflation. Other benefits could be derived from marrying Walgreens’ wholesale operation with Rite Aid.”

Walgreen’s has stores in the following locations: Channahon, Romeoville, Shorewood, Bolingbrook, Joliet, Yorkville, Montgomery, Plainfield, Oswego and Naperville.

There are no Rite Aids in Illinois, according to the store’s website.

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