Rite Aid CorporationNYSE
Fri, Dec. 9, 3:46 PM
- A sale package should be approved by year-end, an attorney involved with negotiations tells CFTN.
- A real estate executive says Fred's (FRED +0.1%) will take a "substantial" number of stores, as will Kroger (KR +1.5%) and at least two other private-equity players.
- Fred's yesterday sent tongues wagging when management suggested a "pending transaction."
- Walgreens (WBA +2.4%) was already up on the session, but Rite Aid (RAD +3.5%) has popped as the news crossed in the last few minutes.
Fri, Dec. 9, 9:43 AM
- Fred's (FRED -6%) sent a little shockwave into the drug store sector during yesterday's earnings call when management cut out all Q&A due to a "pending" transaction.
- One obvious scenario is that Fred's is attempting to buy Walgreen Boots Alliance (WBA +0.6%) stores that need to be divested ahead of the merger with Rite Aid (RAD +0.9%).
- Fred's earnings call transcript
Wed, Dec. 7, 11:23 AM
- Rite Aid (RAD -0.4%) is the top arbitrage pick of Chris DeMuth for 2017.
- The FTC review of the Walgreens buyout has held shares back due to the lingering antitrust risk.
- "The $0.87 arb spread offers a 68% IRR if the deal closes by February," notes DeMuth.
- Just this week, investors betting on the Virgin America-Alask Air combination to close were rewarded when the deal landed antitrust approval.
Fri, Nov. 11, 4:57 PM
- Albertsons and Kroger (NYSE:KR) have emerged as key prospective suitors for Walgreens (NASDAQ:WBA) in its attempts to find a way to satisfy the FTC's review of the company's proposed acquisition of Rite Aid (NYSE:RAD), while CVS (NYSE:CVS) seems to have withdrawn interest, CTFN reports.
- Walgreens has not yet "freshened up the package" of store selloffs that it plans to present to the FTC, according to the report, which cites an antitrust attorney, who also says that "Albertsons and Kroger are established retail players with experience in pharmacies" and that the assets they are eyeing represent "key geographic expansion for both."
Fri, Oct. 28, 11:22 AM
- Drug wholesaler McKesson's (MCK -23.2%) lackluster Q3 numbers and softer guidance due to pricing pressure is weighing on the entire drug supply chain. Competitors AmerisourceBergen (ABC -11.9%) and Cardinal Health (CAH -11.2%) report next week.
- Representative tickers: (ESRX -4.5%)(CVS -3.9%)(WBA -2.7%)(RAD -0.9%)(UNH +0.1%)
Thu, Oct. 27, 2:41 PM
- Amazon (NASDAQ:AMZN) sees an opportunity in the U.S. to open up as many as 2K Amazon Fresh grocery stores in the next ten years, according to Business Insider.
- A 20-store pilot program is expected to be up and running by the end of 2018, with a mix of traditional-style grocery stores and online pickup locations.
- Internal documents reviewed by BI indicate that Amazon is still deciding if the stores will be tied to Amazon Prime memberships.
- Amazon's determination with a large-scale store roll-out could have significance for grocery stores and other retail chains (WMK, SVU, WFM, IMKTA, CASY, KR, SFS, WBA, CASY, WMT, TGT, RAD) as they consider their own future models.
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, FXD, IYC, FDIS, SCC, RCD, UCC, PMR, CNDF, FTXD, JHMC.
Thu, Oct. 20, 9:52 AM
- Shares of Rite Aid (NYSE:RAD) are up 4.4% in early trading after the company extended the merger deadline with Walgreens Boots Alliance .
- Walgreens management issued a positive outlook on a deal being worked out with the FTC and indicated that synergies of $1B will be realized within three to four years after the deal closes.
Thu, Oct. 20, 8:22 AM
Thu, Oct. 20, 7:08 AM| Thu, Oct. 20, 7:08 AM | 13 Comments
Wed, Oct. 19, 10:59 AM
- Just a negotiating tactic? Height Securities suggests that Kroger (KR +0.5%) may have intentionally leaked that they were close to stepping away from plans to buy Walgreens and Rite Aid (RAD -5.3%) stores.
- The investment firm speculates that Kroger is still in the mix while it waits for a sweeter offer from Walgreen Boots Alliance (WBA -0.8%).
- Previously: NY Post: Kroger may not buy Walgreens-Rite Aid stores (Oct. 19)
Wed, Oct. 19, 10:14 AM
- Rite Aid (RAD -4.5%) tumbles in early trading after the NY Post reports that Kroger (KR +0.3%) may pass on buying the 650 stores that Walgreens (WBA -1.2%) and RAD would need to sell to gain regulatory approval for their planned merger.
- KR may decide not to buy because the Federal Trade Commission, now a year into its merger review, recently told the company that the stores could not be purchased and closed, with the operations moved inside the grocery stores, according to the report.
- A WBA-RAD merger would create the biggest U.S. drug chain, and the FTC could sue to block the deal without a solution to the stores, but the report quotes a source as saying that both the FTC and WAG remain motivated to find a remedy.
Wed, Oct. 19, 9:14 AM
Tue, Oct. 11, 1:35 PM
- A large part of the retail sector will need to keep a watchful eye on Project Como at Amazon. The plan from the Seattle company to sell perishables out of small brick-and-mortar stores could be a disrupter if it were to be built out at scale.
- Convenience store chains such as Casey's General Stores (NASDAQ:CASY), Murphy's USA (NYSE:MUSA), and CST Brands (NYSE:CST) are already being targeted by 7-Eleven's aggressive expansion goals in the U.S. A store roll-out by Amazon could also impact drug store chains Walgreens (NASDAQ:WBA) and Rite Aid (NYSE:RAD) - as well as apply pricing pressure to the sensitive grocery store sector (KR, SVU, SPTN, IMKTA).
- Previously: 7-Eleven eyes huge expansion in U.S. (Sept. 22)
- Previously: Amazon considered to be planning convenience stores, curbside pickup locations for grocery products (Oct. 11)
Thu, Oct. 6, 3:51 PM
- "There is a growing consensus that suggests a troubling decrease in competition," says FTC Commissioner Terrell McSweeny in prepared remarks at a conference. "Against this backdrop, "the role antitrust plays in maintaining competitive markets has become, quite appropriately, an important topic of public debate."
- Pretty vanilla stuff, but there was also a report last week suggesting the FTC wanted more in the way of divestitures from Walgreens Boots Alliance (WBA -0.3%) before greenlighting the merger.
- RAD -2.85%
Wed, Sep. 28, 9:19 AM
- Private equity firms aren't showing a great deal of interest in the 650 retail stores being unloaded by Walgreens Boots Alliance (NASDAQ:WBA) in order to comply with the FTC's ruling on the Rite Aid (NYSE:RAD) merger, reports New York Post. Many of the stores are seen as unprofitable investments.
- The lack of interest could pave the way for CVS Health (NYSE:CVS) to step in and buy stores selectively if the FTC and Walgreens back off the stated goal of finding a single buyer.
- The 650 units on the sales block only represent 5% of the total Walgreens-Rite Aid store count.
Thu, Sep. 22, 7:40 AM
- Rite Aid (NYSE:RAD) reports same-store sales declined 2.5% in Q2.
- Comparable front-end sales +0.1% and pharmacy comp down 3.6%.
- Retail pharmacy sales slipped 2.5% to $6.49B due to decrease in same store sales.
- Prescription sales accounted for 68.5% of total drugstore sales.
- Gross margin rate squeezed 120 bps to 23.9%.
- SG&A expense rate improved 40 bps to 22.1%.
- Adjusted EBITDA fell 9.8% to $312.7M.
- Store count: Wellness centers +355 Y/Y to 2,214; Total stores -11 Y/Y to 4,550.
- RAD +0.49% premarket.