Walgreens Boots Alliance, parent company of Walgreens, says it remains actively engaged with the Federal Trade Commission regarding its review of the pending acquisition of Rite Aid.
Walgreens Boots Alliance now expects that the most likely outcome will be that both companies will be required to divest more than 500 stores but fewer than 1,000. In addition, the company continues to believe that the acquisition will close in the second half of 2016. The company also continues to expect that it will realize synergies from the acquisition in excess of $1 billion, to be fully realized within three to four years of closing.
Walgreens Boots Alliance announced its proposed purchase of Rite Aid in October 2015. Based in Camp Hill, Pennsylvania, Rite Aid is a leading U.S. drugstore chain with nearly 4,600 stores in 31 states and the District of Columbia and fiscal 2015 revenues of $26.5 billion. The deal is valued at about $17.2 billion. Walgreens said in October: “Walgreens Boots Alliance is highly focused on building a differentiated in-store experience for health, wellness and beauty, and this combination will help accelerate Rite Aid’s own efforts toward that end. Once the acquisition closes, Walgreens Boots Alliance plans to further transform Rite Aid’s stores to better meet consumer needs.”
Walgreens Boots Alliance, based in Deerfield, Illinois, was created through the combination of Walgreens and Alliance Boots in December 2014, bringing together companies with complementary geographic footprints and expertise in the pharmaceutical wholesaling and community pharmacy care businesses. Walgreens Boots Alliance has more than 13,100 stores in 11 countries and a pharmaceutical wholesale and distribution network with more than 350 distribution centers delivering to 200,000-plus pharmacies, doctors, health centers and hospitals each year in 19 countries. The company’s portfolio of retail and business brands includes Walgreens, Duane Reade, Boots and Alliance Healthcare, as well as health and beauty product brands such as No7, Botanics, Liz Earle and Soap & Glory.
