Rite Aid and Walgreens begin store transfer process
The transition has begun.
Rite Aid announced that it has completed the pilot closing and first subsequent closings as part of its asset purchase agreement with Walgreens Boots Alliance. Rite Aid executed the transfer of 97 stores and related assets to Walgreens. Under the amended agreement, Walgreens will purchase a total of 1,932 stores, three distribution centers and related inventory from Rite Aid for an all-cash purchase price of $4.375 billion on a cash-free, debt-free basis.
"Successfully completing the pilot closing and first subsequent closings marks an important step in realizing the full benefits of this transaction," stated John Standley, Rite Aid chairman and CEO. "I am proud of the entire Rite Aid team for their commitment and dedication to helping us reach this milestone. I also want to thank our team for their continued support as we complete the transfer process over the next several months and implement our plans to deliver improved results."
Rite Aid and Walgreens expect to continue to transfer ownership of the stores in phases over the coming months, with the goal being to complete the store transfers in spring of 2018.
Most of the stores being sold to Walgreens are in the southeastern U.S., leaving Rite Aid with the majority of its stores on the East and West coasts.
Rite Aid announced that it has completed the pilot closing and first subsequent closings as part of its asset purchase agreement with Walgreens Boots Alliance. Rite Aid executed the transfer of 97 stores and related assets to Walgreens. Under the amended agreement, Walgreens will purchase a total of 1,932 stores, three distribution centers and related inventory from Rite Aid for an all-cash purchase price of $4.375 billion on a cash-free, debt-free basis.
"Successfully completing the pilot closing and first subsequent closings marks an important step in realizing the full benefits of this transaction," stated John Standley, Rite Aid chairman and CEO. "I am proud of the entire Rite Aid team for their commitment and dedication to helping us reach this milestone. I also want to thank our team for their continued support as we complete the transfer process over the next several months and implement our plans to deliver improved results."
Rite Aid and Walgreens expect to continue to transfer ownership of the stores in phases over the coming months, with the goal being to complete the store transfers in spring of 2018.
Most of the stores being sold to Walgreens are in the southeastern U.S., leaving Rite Aid with the majority of its stores on the East and West coasts.