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Walgreens announces plans to buy Kerr Drug
September 10th, 2013
DEERFIELD, Ill. – Walgreen Co. has announced plans to acquire the Kerr Drug regional drug chain, which operates 76 drug stores in North Carolina and had fiscal 2012 sales of $381 million.
Financial terms of the deal were not disclosed. Assuming it clears regulatory and other hurdles, the transaction is expected to close this year. Walgreens said it expects that the purchase won't have a material impact on its earnings per share in fiscal year 2014.
The acquired stores will continue to operate under the Kerr name for a while. The companies said decisions will be made over time regarding the best way to integrate the stores and specialty pharmacy business with Walgreens' operations.
The acquisition boosts Walgreens' presence in the fast-growing markets of North Carolina, and the company says that Kerr's standard of innovation and excellence in pharmacy service also fits well with Walgreens' own strategy to transform the role community pharmacy plays in health care.
"The Kerr Drug retail drug stores and specialty pharmacy business are an exceptional addition to the Walgreens family of companies," Walgreens president and chief executive officer Greg Wasson said in a statement. "We are closely aligned on the important task of expanding the health care role that community pharmacists can have with their patients, and we share the common goal of stepping out of the traditional drug store format to create a new experience for our customers."
The acquisition is structured as an asset transaction, including Kerr's stores, specialty pharmacy business and distribution center. Kerr will retain ownership of its long-term care pharmacy business.
"Kerr Drug's strategy and core principles have always been focused on its unique ability to provide patients access to the most comprehensive and convenient health and wellness offering in the industry," stated Kerr Drug chairman, president and CEO Anthony Civello. "Walgreens is the perfect partner to continue this journey as a patient-oriented company dedicated to expanding the role of the pharmacist as an integral part of health care."