Walgreens acquires Rite Aid for $4.4B: What it means for consumers

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Walgreens acquires Rite Aid for $4.4B: What it means for consumers

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FILE - This June 4, 2014, file photo, shows a Walgreens retail store in Boston. Walgreens and Rite Aid will sell 865 stores to rival retailer Fred’s for $950 million, possibly removing the final roadblock preventing the tie up between the nation’s largest and third-largest drugstore chains, in news announced Tuesday, Dec. 20, 2016. (AP Photo/Charles Krupa, File)

Walgreens has secured regulatory clearance to buy Rite Aid for $4.4 billion.

Walgreens Boots Alliance, Inc. will buy 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. Rite Aid will retain approximately 250 additional stores as compared to the prior agreement announced between Rite Aid and Walgreens in June 2017.

The decision to retain these stores follows discussions between Rite Aid and Walgreens and the U.S. Federal Trade Commission.

“Securing regulatory clearance provides us with a clear path forward to realize the benefits of this transaction,” said Rite Aid Chairman and CEO John Standley. “With a compelling and more profitable store footprint in key markets, enhanced purchasing capabilities and a stronger balance sheet and improved financial flexibility, we are well positioned to implement our plans to deliver improved results.”

Both Rite Aid and Walgreens have stores across Southwest Ohio. Rite Aid is one of the nation’s leading drugstore chains that currently operates more than 4,500 stores in 31 states. Stores will continue operating as is, the company said.

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