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It's official--Walgreens to buy Rite Aid

misterchimpy 1,348 3,951 October 27, 2015 at 10:58 AM in Chat (2)
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Last Edited by misterchimpy October 27, 2015 at 02:31 PM
Transaction expected to close in the 2nd half of 2016
Walgreens expects to operate Rite Aid as a separate subsidiary--initially.

Mad

https://finance.yahoo.com/news/wa...00159.html

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.

“Today’s announcement is another step in Walgreens Boots Alliance’s global development and continues our profitable growth strategy. In both mature and newer markets across the world, our approach is to advance and broaden the delivery of retail health, wellbeing and beauty products and services,” said Walgreens Boots Alliance Executive Vice Chairman and CEO Stefano Pessina. “This combination will further strengthen our commitment to making quality healthcare accessible to more customers and patients. Our complementary retail pharmacy footprints in the U.S. will create an even better network, with more health and wellness solutions available in stores and online. Walgreens Boots Alliance will provide to Rite Aid its global expertise and resources to accelerate the delivery of integrated frontline care, and to offer innovative solutions for providers, payers and other entities in the U.S. healthcare system. Finally, this combination will generate a stronger base for sustainable growth and investment into Rite Aid stores, while realizing synergies over time.”

“Joining together with Walgreens Boots Alliance will enhance our ability to meet the health and wellness needs of Rite Aid’s customers while also delivering significant value to our shareholders,” said Rite Aid Chairman and CEO John Standley. “This transaction is a testament to the hard work of all our associates to deliver a higher level of care to the patients and communities we serve. Together with Walgreens Boots Alliance, the Rite Aid team can continue to build upon this great work through access to increased capital that will enhance our store base and expand opportunities as part of the first global pharmacy-led, health and wellbeing enterprise.”

The boards of directors of both companies have approved the transaction, which is subject to approval by the holders of Rite Aid’s common stock, the expiration or termination of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and other customary closing conditions. The transaction is expected to close in the second half of calendar 2016.

The transaction is expected to be accretive to Walgreens Boots Alliance’s adjusted earnings per share in its first full year after completion. Additionally, Walgreens Boots Alliance expects to realize synergies in excess of $1 billion.

Upon completion of the merger, Rite Aid will be a wholly owned subsidiary of Walgreens Boots Alliance, and is expected to initially operate under its existing brand name. Working together, decisions will be made over time regarding the integration of the two companies, ultimately creating a fully harmonized portfolio of stores and infrastructure.

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#2
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Last edited by SUCHaDEAL October 27, 2015 at 12:05 PM
LMAOLMAOLMAOLMAOLMAOLMAOLMAOLMAOLMAOLMAO:
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#3
I don't like this one bit!
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#4
Oh my!
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Thanks.bounce
#5
Wonder if this means that Rite Aid would integrate into their Wellness system, or if Walgreens would get grandfathered into the Plenti network...
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#6
Damn it, this is absolute monopoly
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#7
Quote from seerc View Post :
Damn it, this is absolute monopoly
so is Staples buying Office Depot, hopefully that one won't go through either
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#8
Quote from Saberpilot View Post :
Wonder if this means that Rite Aid would integrate into their Wellness system, or if Walgreens would get grandfathered into the Plenti network...
I hope the latter...In fact, I hope they keep the Rite Aid name...
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#9
I hope Walgreens uses the Plenti program & RA's coupon policy. Wags Balance Rewards & their coupon policy is too confusing for me. There's also been quite a few times when I wanted to use a coupon at Wags that they treated me like a criminal even though I (always) had a real coupon to redeem.
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#10
Quote from staxin View Post :
so is Staples buying Office Depot, hopefully that one won't go through either
On the same page with you. I am so worried there will be no deals to play around and we will lose gold discount. As long as I am allowed to say I h*te that giant arrogant walgreens I would say as many times as I can LMAO My dear sweet generous RA please don't go for the hug please stay with us.......
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#11
from the wsj article
In terms of market value, Rite Aid is much smaller than Walgreens and CVS, which both exceed $100 billion. Rite Aid had revenue in the fiscal year ended in February of $26.5 billion. Walgreens had revenue in the 12 months ended in August 2014 of $76.4 billion, while CVS had 2014 sales of $139.4 billion.
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#12
Updated the initial story--deal is now official. But...won't close until second half of next year and won't be immediately integrated into Walgreens. So, we probably have another year to 18 months, although I have to imagine that the deals will start to wind down once the deal closes.
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#13
Rite Aid owns Thrifty Ice Cream. That's one element that I hope Walgreens, like Rite Aid when they bought Thrifty Payless, continues with after the merger. Thrifty Ice Cream is the best mass-marketed ice cream in California.
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#14
Yikes. Frown The Walgreen's (about 2.0 miles away) wouldn't even let me do 2 transactions in one visit. My RA (0.75 miles away) is absolutely darling and they're happy to serve me. As long as coupons don't beep, we're good to go. This is bad news.
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Haters just need a hug. heartheart
#15
Of all the drugstores, wags is the worst when it comes to scamming their customers. They don't put out all the sales tags, it's a complete gamble to have their clearance stuff actually ring up sales price, and more and more coupons beep if you simply try to use a second one (i'm starting to think this is on purpose).
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