Grocery retailer Albertsons to acquire Rite Aid drug stores
Date
2/21/2018 1:37:42 AM
(MENAFN- AFP)Privately-held grocery retail chain Albertsons will buy the remaining parts of Rite Aid Corp that have not been sold to Walgreens Boots Alliance, the companies announced Tuesday.
The combined company is expected to have annual revenues of $83 billion, with earnings of nearly $4 billion, Albertson's said in a statement.
The cash and stock transaction comes as retailers struggle to adapt to intense competition from internet shopping and will allow Albertsons to go public after years of ownership by an investor consortium involving Cerberus Capital Management.
"The combined platform positions Rite Aid to capitalize on our pharmacy expertise and expand and enhance our pharmacy footprint," Rite Aid Chairman and CEO John Standley said in a statement.
"We are confident that delivering improved customer experiences and value will drive growth and profitability while creating compelling long-term value for shareholders."
Standley will serve as CEO of the new company while current Albertson's CEO Bob Miller will serve as chairman.
Walgreens plans to buy about 2,000 of Rite Aid's locations, a little less than half, for about $4.4 billion after the Federal Trade Commission blocked the pharmacy chain's outright sale to Walgreens last year.
Headquartered in Boise, Idaho, the combined company will operate 4,900 locations, with 4,350 pharmacies -- including those inside grocery stores -- and 320 clinics in 38 US states. Stand-alone Rite Aid pharmacies will continue to operate under the same brand name.
Rite Aid shares closed up 3.3 percent on the news.
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