To obtain merger approval, Rite Aid believes store divestitures will total 1,200 locations

5/4/2017

CAMP HILL, Pa. — In a 10-K filing to the Securities and Exchange Commission Wednesday, Rite Aid expressed its belief that the proposed per share merger acquisition would likely fall to $6.50 per share, suggesting the divestiture of an additional 335 stores to secure approval from the Federal Trade Commission.



"While the exact per share merger consideration is not known as of the date of this report, based on discussions with the FTC regarding potential remedies after filing the preliminary proxy statement ... Rite Aid believes that the per share merger consideration would likely be $6.50 per share," the company reported.



"Pursuant to the terms and subject to the conditions set forth in the Asset Purchase Agreement, Rite Aid agreed to sell 865 Rite Aid stores and certain specified assets related to store operations to [Fred's Pharmacy] for a purchase price of $950 million plus [Fred's] assumption of certain liabilities of Rite Aid and its affiliates," Rite Aid added. "Should the divestiture of up to 1,200 stores be required to obtain regulatory approval, all parties to the Asset Purchase Agreement agree to negotiate in good faith to amend the Asset Purchase Agreement accordingly."



 


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