Rite Aid Corp (NYSE:RAD) provided an update on the development of its plans to offer stores to Walgreens Boots Alliance Inc (NASDAQ:WBA) pursuant to the earlier reported Restated and Amended Asset Purchase Deal in September 2017.
As of January 22, 2018, the company has transferred 625 stores and linked assets to Walgreens, and has recorded cash proceeds of around $1,309 million, which it is using to close all of its outstanding secured loans worth $970 million while keeping a strong liquidity position. As per the Asset Purchase Agreement, Walgreens will buy 1,932 stores, three distribution hubs and linked inventory from Rite for an all-cash deal price of $4,375 million on a debt-free, cash-free basis.
John Standley, the CEO and Chairman of Rite, expressed that their teams continue to record remarkable progress in transferring stores to Walgreens and he want to thank the teams for their ongoing dedication and commitment. They are on track to close the transfer of stores in this spring. Going forward, they stay focused on the sustained smooth execution of that procedure and capitalizing on their most considerable business-building prospects as they work together to offer a great experience to their patients and customers, and drive value for their shareholders.
The majority of the completion conditions have been met, and the subsequent movements of Rite Aid stores and linked assets remain contingent to minimal customary completion conditions applicable merely to the stores being moved at such subsequent closing, as mentioned in the Asset Purchase Agreement. More details regarding today’s news have been submitted with the SEC on Form 8-K.
It should be noted that Rite Aid is one of the country’s famous drugstore chains with FY2017 annual revenues of around $32 billion. More Information about company, including press releases and corporate background, is available through the firm’s website.