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Report: Fred’s could receive cash infusion to help purchase Rite Aid stores


Fred’s plan to purchase at least 865 divested Rite Aid stores may be getting a step closer to becoming a reality.

More than one prominent investor has recently approached Fred’s Pharmacy, a regional drug chain that operates 601 locations in 16 states. The investors' goal is to help Fred's pay for and successfully operate the 865 divested Rite Aid stores it pledged to purchase for $950 million, according to the New York Post.

The FTC could require more Rite Aid stores be divested to give its blessing to the merger.

Coinciding with reporting its 2016 fourth-quarter and full-year results on Thursday, April 6, the company said, “Fred’s Pharmacy remains committed to purchasing additional assets, including up to 1,200 Rite Aid stores, to the extent necessary to obtain the FTC’s approval of the transaction.”

Fred’s added the addition of Rite Aid stores would be highly beneficial to the company. “The proposed acquisition of the stores, which are based in highly attractive markets, is a transformative event that will add substantial scale to the company and transform Fred’s Pharmacy, the largest regional pharmacy player, into an even stronger competitor and the third-largest drugstore chain in the nation,” the company said. “The transaction will accelerate the Company’s healthcare growth strategy, generating considerable benefits for our customers, patients, payers, supplier partners, team members and shareholders.”

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