Rite Aid to sell 865 stores to Fred’s for $950 million
Publish Date: December 21, 2016
Walgreens Boots Alliance and Rite Aid Corp. will sell 865 Rite Aid stores and certain assets related to store operations to Memphis, Tenn.-based Fred's Pharmacy for $950 million, in an all-cash transaction.
The transaction is part of a move to address concerns identified by the Federal Trade Commission in its review of the proposed acquisition of Rite Aid by Walgreens Boots Alliance, which was announced in October 2015.
The proposed divestiture transaction, if approved, would establish Fred's Pharmacy as one of the largest drugstore chains in the United States 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. “This will be a transformative event for Fred’s Pharmacy that will accelerate our healthcare growth strategy, " said Fred’s Pharmacy CEO Michael K. Bloom. Before the deal, Fred’s, Inc. and subsidiaries operate 647 discount general merchandise stores and three specialty pharmacy-only locations in 15 states in the southeastern U.S.
Walgreens Boots Alliance is the largest retail pharmacy in the U.S. and europe with over 13,200 stores in 11 countries.