Deals
Walgreens Boots Alliance to Buy Rite Aid for $17.2 Billion
- Rite Aid acquisition valued at $17.2 billion including debt
- Walgreens adjusted earnings of 88 cents top 81-cent estimate
Will Walgreens Rite Aid Buy Face Regulatory Hurdles?
This article is for subscribers only.
Walgreens Boots Alliance Inc. agreed to acquire Rite Aid Corp. for about $9.4 billion in cash in a transaction to further expand the company’s role in the distribution of medications in the U.S.
The Rite Aid deal, announced Tuesday, would combine the second- and third-largest drugstore chains in the U.S., with a total of about 12,800 locations, helping Walgreens vault past market leader CVS Health Corp. The acquisition will add to Walgreens’ earnings beginning a full year after completion and will produce more than $1 billion in savings from cost overlaps, the companies said Tuesday in a statement. Including debt, the deal is valued at $17.2 billion, they said.