Rite Aid asset transfer to WBA 85% complete

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Rite Aid asset transfer to WBA 85% complete

By Michael Johnsen - 03/06/2018
Rite Aid on Monday reported the successful asset transfer of more than 85% of the stores the company is selling to Walgreens Boots Alliance. As of March 2, Rite Aid has transferred 1,651 stores and related assets to WBA, and has received cash proceeds of $3.6 billion, which the company continues to use to reduce debt.

Under the Asset Purchase Agreement, WBA will purchase a total of 1,932 stores, three distribution centers and related inventory from Rite Aid for an all-cash purchase price of $4.4 billion on a cash-free, debt-free basis.

The majority of the closing conditions have been satisfied, and the subsequent transfers of Rite Aid stores and related assets remain subject to minimal customary closing conditions applicable only to the stores being transferred at such subsequent closing, as specified in the Asset Purchase Agreement.

Rite Aid expects to complete the store transfer process in the spring of 2018.

After all stores are acquired, stores are planned to be converted to the Walgreens brand in phases over time. The stores to be purchased are located primarily in the Northeast and Southern U.S., and the three distribution centers to be purchased are located in Dayville, Conn., Philadelphia, Pa., and Spartanburg, S.C.

The deal was first announced in September.

More recently, Albertsons announced its intent to merge with remaining Rite Aid stores as part of a deal that would make the new Albertsons/Rite Aid combo the fourth largest pharmacy in the U.S.