Specialty Retail | Camp Hill, PA | Corporate Acquisition
With the deadline to receive regulatory approval for their earlier deal looming next week, Walgreens Boots Alliance has reached a new agreement to purchase from Rite Aid a total of 2,186 stores, three distribution centers and related inventory for $5.175 billion in cash. The deal replaces a $9.4 billion merger agreement between the two companies that was first announced in 2015; concurrent to that deal, Rite Aid was slated to divest almost 1,000 stores to Fred’s, a pharmacy chain. Walgreens will pay Rite Aid a $325 million termination fee. Stock in Rite Aid (NYSE: RAD) closed Thursday down more than 26%.