Retail News Breaks
Walgreens agrees to acquire USA Drug
July 5th, 2012
DEERFIELD, Ill. – Walgreen Co. plans to acquire the USA Drug pharmacy chain, which operates 144 stores, mostly in the Mid-South, under the USA Drug, Super D Drug, May’s Drug, Med-X and Drug Warehouse banners, from Stephen L. LaFrance Holdings Inc. and members of the LaFrance family.
Walgreens will pay approximately $438 million, subject to adjustment in certain circumstances, for the assets.
The stores, located in Arkansas, Kansas, Mississippi, Missouri, New Jersey, Oklahoma and Tennessee, will significantly strengthen Walgreens’ presence in the Mid-South. The acquisition includes corporate offices, a distribution center located in Pine Bluff, Ark., and a wholesale and private brand business.
"This acquisition expands our business in an important region of the country," Walgreens president and chief executive officer Greg Wasson said in a statement. "It will provide significant new pharmacy business for us in this region while also enabling us to bring the Walgreens experience to many additional smaller communities where USA Drug has developed strong operational expertise."
The transaction is expected to close around September 1, according to a Walgreens spokesman, who added that the company does not expect the transaction to have a material impact on earnings per share in fiscal year 2012.
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