Walgreen to Acquire Drugstore Chain Duane Reade
The Walgreen Co. announced a definitive agreement to acquire the New York City-based drugstore chain Duane Reade in a all-cash transaction for the total price of $1.075 billion, including the assumption of debt.
The acquisition is subject to receiving regulatory approvals. Walgreens will fund purchasing with existing cash and expects it to close in its fiscal year, which ends Aug. 31.
“Duane Reade is often a compelling strategic acquisition that will immediately provide Walgreens using a leading position within the largest drugstore market within the U.S.,” said Walgreens president and chief executive Greg Wasson in an announcement reporting the acquisition.
Duane Reade, named after its first store on Broadway between Duane and Reade streets in Manhattan, is probably the largest drugstore chains in New York City, operating 257 stores within the metro area.
Duane Reade will continue to operate under its name after the transaction closes. Walgreens also operates 70 stores within the New York City area. A decision about the integration with the two brands are going to be made inside the future.
Walgreens expects to retain Duane Reade’s store, pharmacy and distribution center employees and lots of members of Duane Reade’s senior management team after the acquisition.
Walgreens (NYSE: WAG), situated in Deerfield, Ill., is among the largest drugstore chains inside the nation. It operates 7,162 stores in most 50 states, the District of Columbia and Puerto Rico, including a lot more than 30 inside the four-county Sacramento area.
adapted from:
