The Other Albertsons’ Acquisition
By George Anderson
With practically all the media attention given to Supervalu’s acquisition of a large chunk of Albertsons, many have forgotten that others made significant deals with the grocer and drugstore chain themselves. Case in point, CVS Corporation.
With the drugstore chain’s deal to buy 700 standalone Sav-On and Osco stores from Albertsons, it now has 6,100 stores in 42 states and Washington, D.C.
The deal, as CVS sees it, is most important for the stores acquired in Midwest markets and southern California.
In a press release issued last Friday, Tom Ryan, chairman, president, and CEO of CVS, said, “We see significant, long-term strategic and financial benefits from the addition of these stores, and look forward to capitalizing on the many growth opportunities presented by this important acquisition.”
CVS has been able to grow through a series of acquisitions, including its purchase of 1,260 Eckerd stores from J.C. Penney back in 2004.
The company has received high marks for integrating the Eckerd stores into its system and Mr. Ryan is confident the same will happen with Sav-On and Osco. “Our highly experienced team is already launching our comprehensive integration plan, and we welcome the talented Osco and Sav-On associates into the CVS family,” he said.
While it has seen success through the acquisition route, some financial analysts believe the company will have to rely on organic growth to meet expectations in the future.
Stephanie Hoff of Edward Jones told Forbes.com, “I see few opportunities to make more acquisitions.”
Moderator’s Comment: How successful do you believe CVS has been with past acquisitions? Where does it go from here after buying Osco and Sav-On?
– George Anderson – Moderator
- CVS Corporation Completes Acquisition
of Approximately 700 Standalone Sav-On and Osco Drugstores – CVS Corporation/Business Wire
- Where Does CVS Go From Here? – Forbes.com