Walgreens Boots Alliance has reached a deal valued at $9.4 billion to acquire Rite Aid, bringing together two of the three largest drugstore chains in the U.S.
While it's likely the two companies will be required to sell off stores to satisfy the antitrust concerns of federal regulators, the combination of Walgreens (8,200 stores) and Rite Aid (4,600) should outnumber CVS Health, which currently operates 7,800 stores. CVS and Target announced a deal this summer, subject to regulatory approval, that would place the drugstore chain's pharmacists behind the counters in 1,660 of the mass merchant's stores.
"Our complementary retail pharmacy footprints in the U.S. will create an even better network, with more health and wellness solutions available in stores and online," said Stefano Pessina, executive vice chairman and CEO of Walgreens Boots Alliance, in a statement. "Walgreens Boots Alliance will provide to Rite Aid its global expertise and resources to accelerate the delivery of integrated frontline care, and to offer innovative solutions for providers, payers and other entities in the U.S. healthcare system. Finally, this combination will generate a stronger base for sustainable growth and investment into Rite Aid stores, while realizing synergies over time."
Rite Aid's stores will initially operate under their current banner before being converted to Walgreens.
Photo: Walgreens Boots Alliance
- Walgreens Boots Alliance to Acquire Rite Aid for $17.2 Billion in All-Cash Transaction - Walgreens Boots Alliance
- Walgreens, Rite Aid Unite to Create Drugstore Giant - The Wall Street Journal (sub. required)
- Walgreens says will buy smaller drugstore rival Rite-Aid - Reuters
- Giant pharmacy merger: Walgreens buys Rite Aid in $17.2 billion deal - CNNMoney
- Will the Target/CVS pharmacy deal lead to a future merger? - RetailWire