Drugstore shakeup: Walgreens and Rite Aid strike new deal

|By:, SA News Editor

Walgreen Boots Alliance (NASDAQ:WBA) and Rite Aid (NYSE: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 (NASDAQ:FRED-24.76% to $9.27.