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.
Now read: How I May Play Rite Aid »