Deerfield, Ill.-based Walgreens Boots Alliance, Inc. will buy Camp Hill, Pa.–based Rite Aid Corp. for a total enterprise value of approximately $17.2 billion, including $9.41 billion in cash and about $8 billion in acquired net debt.
Once the acquisition closes, Walgreens Boots Alliance plans to upgrade Rite Aid’s 4,600 stores. Walgreens Boots Alliance operates 13,100 stores in 11 countries.
“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.”
Walgreens Boots Alliance expects to realize synergies in excess of $1 billion through the merger of the two companies. 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.
