DEERFIELD, Ill. — Walgreens and Fred’s have entered into a definitive asset purchase agreement, where Walgreens will purchase pharmacy patient prescription files and related pharmacy inventory of 185 Fred’s stores located across 10 Southeastern states.
Under the terms of the agreement, the aggregate consideration to be paid by Walgreens to Fred’s is $165 million, subject to adjustment, plus an amount equal to the value of related pharmacy inventory.
Fred’s exit from the pharmacy business comes after its deal to buy hundreds of Rite Aid Corp. stores was vetoed by the Federal Trade Commission last year.
“This agreement increases patient access to Walgreens pharmacies in the Southeastern U.S., and allows us to introduce more people to Walgreens’ trusted pharmacy services in these communities. We look forward to welcoming Fred’s patients and team members who are hired into available Walgreens positions,” said Richard Ashworth, Walgreens president of operations.
The transaction is part of a previously announced plan by Fred’s to unlock shareholder value by monetizing noncore assets through strategic transactions. Fred’s will continue to operate its retail stores at most of these locations after the pharmacies close. Once the deal is final, Fred’s will continue to operate approximately 162 pharmacies across nearly 600 stores.