Fred’s remains committed to buying divested Rite Aid locations

MEMPHIS, Tenn. — Fred’s Pharmacy confirmed its agreement to purchase divested stores remains in effect following Monday’s news that Walgreens Boots Alliance and Rite Aid extended the deadline for their potential merger agreement.

“Fred’s Pharmacy affirms that the asset purchase agreement it entered into on Dec. 19 with Walgreens and Rite Aid remains in effect. As previously disclosed, to the extent the Federal Trade Commission requests that additional stores be sold, and Walgreens agrees to sell such stores, Fred’s Pharmacy has agreed to buy those stores. The amendment and extension of the Walgreens-Rite Aid merger agreement reinforces the Company’s confidence that the transaction is in the mutual best interest of Fred’s Pharmacy and all of its shareholders. Fred’s Pharmacy continues to work with the FTC, Rite Aid and Walgreens to complete the transaction, and looks forward to realizing the considerable benefits the transaction will bring to customers, patients, payors, supplier partners, team members and shareholders,” Fred’s said in a statement.

Fred’s initially agreed to purchase 865 divested Rite Aid stores once the Walgreens-Rite Aid deal was completed. However, this number could go higher, with the chance the FTC requires up to 1,200 stores be divested. Per terms of the agreement, Fred’s is expected to buy all of the necessary divested stores, and would become the third-largest drug store retailer in terms of stores.

Memphis-based Fred’s and its subsidiaries currently operates 647 general merchandise stores and three specialty pharmacy-only locations in 15 Southeastern states.