Drugstore chains like Walgreens are facing a downfall.
Walgreens will close about 600 drugstores as part of its deal to buy nearly 2,000 Rite Aid locations, the chain announced.
Walgreens Boots Alliance Inc. is in the process of acquiring 1,932 Rite Aid stores as part of a US$4.4 billion deal expected to be complete by the spring of 2018.
Through a press release, Walgreens stated it had secured regulatory clearance for an amended and restated asset purchase agreement to purchase 1,932 stores, three distribution centers and related inventory from Rite Aid Corporation.
Action against the downfall
As part of the process, Walgreens said it will close 600 stores, mostly Rite Aid locations within a mile of another store.
Some Walgreens stores will be closing as well, the company added.
The consideration for the transaction will now be $4.375 billion in cash, the assumption by Walgreens Boots Alliance of the related real estate leases and the grant of the option to Rite Aid.
Executive Vice Chairman and CEO of Walgreens Boots Alliance, Stefano Pessina, declared “This is a significant moment for our company, and we are excited about the opportunities this agreement will deliver for our customers and patients, employees and investors.”
Leading the industry
The top three drugstore companies in the United States, by store count, are Walgreens Boots Alliance (WBA), CVS Health (CVS), and Rite Aid (RAD), which account for more than 75% of the US pharmacy market share, according to Euromonitor.