Rite Aid acquiring Bartell Drugs
Rite Aid is acquiring a power player in the Seattle market. The Camp Hill, Pa.-based company will be acquiring Bartell Drugs, which operates 67 stores in Seattle and three counties in Washington State, for a purchase price of $95 million.
The Bartell Drugs locations will continue to operate under the Bartell Drugs banner, alongside Rite Aid’s 69 stores in the area.
"For more than a century, Bartell's has been an integral part of the fabric of Seattle and neighboring communities serving families with pharmacy services, while promoting the health and well-being of local communities," said Heyward Donigan, Rite Aid president and CEO. "The acquisition of Bartell's fits perfectly into and accelerates our RxEvolution strategy, as our companies share a commitment to total health and wellness, the importance of the pharmacist as a trusted health advisor and the critical role the neighborhood pharmacy plays. Expansion within the growing Seattle area will allow Rite Aid to better serve customers, health plans and healthcare providers."
Rite Aid said that the move was motivated by the number of people in the Seattle area who share the company’s holistic health mindset. Rite Aid noted that it aims to be a whole-health destination, anchored by pharmacists who embrace their position as an everyday extension of the healthcare system. The move, Rite Aid said, positions it well to serve Seattle-area customers, as well as regional health plans and health systems in the region.
"Looking forward to the future with Rite Aid, we are excited about the opportunity to expand upon our mission to be the best neighborhood drug store in the Pacific Northwest,” said George Bartell, chairman of Bartell Drugs, Rite Aid's vision fits well with what we think will best serve the needs of our customers. This is a day to celebrate the 130-year success story of Bartell Drugs, while eagerly anticipating the future.”
Rite Aid said it expects the transaction to be accretive to its adjusted earnings per share in the first 12 months after it closes. The deal is expected to close by the end of Rite Aid’s 2021 fiscal year. The company also has updated its fiscal 2021 guidance for capital expenditures and free cash flow, with the former now expected to be between $300 million and $325 million, and the former expected to sit between $60 million and $135 million.