Rite Aid announced yesterday that it expects to close the deal to acquire the Brooks and Eckerd chains by the end of next month, pending final approval from the Federal Trade Commission (FTC) along with Attorney General offices in several states where the individual chains now operate.
With the purchase, Rite Aid will add 1,850 additional stores along with six distribution centers. Rite Aid has agreed to divest 24 stores from Maine to Virginia.
"We're excited about closing the transaction shortly and integrating the Brooks Eckerd stores and associates into Rite Aid. With a detailed integration plan already in place, we're ready to hit the ground running," said Mary Sammons, Rite Aid president and CEO, in a press release.
Rite Aid is looking for its new larger network of stores to give it the scale necessary to compete with Walgreens and CVS.
"We're getting good stores in good locations and talented associates dedicated to serving their customers," Ms. Sammons said. "This is a great opportunity to dramatically accelerate our growth strategy and strengthen our position as the third largest national drugstore chain."
Discussion Questions: What will the newly expanded Rite Aid Corporation be up against once its deal to acquire Brooks and Eckerd is signed and sealed? Do you share Mary Sammons' optimism that Rite Aid and the chains it is acquiring will be "ready to hit the ground running" once the deal is formally approved and signed? Where do you see the greatest opportunities for the larger company to benefit from the various strengths of the individual chains and their human and other assets?