Beauty and personal care behemoth Walgreens Boots Alliance is due to acquire rival drugstore chain Rite Aid.
Headquartered in Pennsylvania, Rite Aid will become a wholly-owned subsidiary of Walgreens Boots Alliance and is expected initially to continue trading under its existing brand name. However, Walgreens did reveal its intention to integrate the two companies in the future.
Rite Aid currently operates approximately 4,600 stores in 31 states and the District of Columbia. To complete the deal, Walgreens will acquire all outstanding shares of Rite Aid for $9 per share in cash totalling $17.2bn, including acquired net debt.
Walgreens Boots Alliance’s Executive Vice Chairman and CEO, Stefano Pessina, said: “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.”
Meanwhile, Rite Aid Chairman and CEO John Standley said: “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.”
