Fred’s to acquire specialty and retail pharmacy company for $66 million

Memphis, Tenn. -- Fred's announced that it has signed an agreement to acquire EntrustRx, a specialty pharmacy operation that has a strong regional presence in the Southeast, as well as the single Reeves-Sain retail pharmacy in Murfreesboro, Tennessee. EntrustRx, which is licensed in all 50 states, dispenses specialty pharmaceuticals to treat complex conditions and diseases that typically require ongoing support for extensive periods of time.



Under the terms of the agreement, Fred's will acquire EntrustRx and the Reeves-Sain retail pharmacy for approximately $66 million, comprising $53 million in cash and a $13 million note payable. Fred's expects to utilize available cash and borrowings under its revolving loan and credit agreement to fund the transaction, which is expected to close in April 2015 subject to customary closing conditions.



"We are excited to announce the acquisition of EntrustRx, which will further expand our presence in the specialty pharmacy arena – the largest growth area of the pharmacy industry," said Fred's CEO Jerry Shore. "It offers a strong strategic fit to our current specialty pharmacy operations.”



Fred's, Inc. operates 661 discount general merchandise stores, including 19 franchised Fred's stores, in the southeastern United States.