Walgreens officially owns Duane Reade

DEERFIELD, Ill. Walgreens on Friday completed its acquisition of Duane Reade's 258 drug stores, as well as the chain's corporate office and two distribution centers.

Walgreens currently plans for Duane Reade to continue operating under its brand name. With 70 Walgreens stores in the New York City metropolitan area, Walgreens said it will consider the most effective way to harmonize both brands over time.

Meanwhile, John Spina, Walgreens VP retail integration and new format development, will continue to oversee the Duane Reade integration process as he has since the acquisition was announced. Spina will work closely with Duane Reade Chairman and CEO John Lederer, who will continue to direct Duane Reade operations. Spina’s responsibility for leading Walgreens Rewiring for Growth initiative –– which is on track to deliver $1 billion in annual cost reductions in fiscal 2011 –– was recently transitioned to Don Huonker, Walgreens SVP healthcare innovation.

“Just as Walgreens has been a trusted community pharmacy for more than 100 years, we plan for Duane Reade to continue as the leading drugstore that millions of New Yorkers rely upon,” said Walgreens president and CEO Greg Wasson. “By combining the strengths of our two companies, we can improve our position as the most convenient provider of consumer goods and services, and pharmacy, health and wellness services in the country.”

Walgreens intends to promptly repay or redeem outstanding indebtedness of Duane Reade and its affiliates pursuant to its credit agreement, dated as of July 21, 2003, its 9.75% senior subordinated notes due 2011, its 11.75% senior secured notes due 2015, and its senior convertible notes due 2022.