September 26, 2017
Regulators have cleared Walgreens to buy 1,932 stores from Rite Aid for $4.38 billion. The acquisition increases Walgreen’s U.S. footprint, although it is 254 fewer stores than it originally planned to buy. The deal is expected to improve Walgreens leverage to buy drugs at reduced costs.
The Deerfield, IL-based drugstore chain is also planning to buy Rite Aid’s three distribution centers located in Dayville, CT, Philadelphia, and Spartanburg, SC. Store purchases are expected to begin next month, and be wrapped up in spring 2018.
Walgreens had struck a deal in July to buy 2,186 Rite Aid stores for $5.18 billion, which came after a failed attempt to take over the nearly 4,600-store chain. The retailer expects to realize roughly $300 million in annual synergies from the deal.
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