Drugstore shakeup: Walgreens and Rite Aid strike new deal

Jun. 29, 2017 7:21 AM ETWalgreens Boots Alliance, Inc. (WBA)By: Clark Schultz, SA News Editor233 Comments
  • Walgreen Boots Alliance (NASDAQ:WBA) and Rite Aid (RAD) work out a store deal to replace the merger agreement between the two companies.
  • Under the terms of the deal, Walgreen will acquire 2,186 Rite Aid stores and related assets for $5.175B.
  • Walgreen expects synergies of +$400M from the acquired store strategy.
  • "This new transaction extends our growth strategy and offers additional operational and financial benefits,” says Walgreens CEO Stefano Pessina.
  • Rite Aid earns a $325M termination fee from the cancellation of the old deal.
  • Fred's is left out in the cold.
  • Source: Press Release
  • Premarket action: RAD -4.07% to $3.77, WBA +3.72% to $79.96, Fred's (FRED-24.76% to $9.27.

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