Walgreens Boots Alliance, Inc. and Rite Aid Corp. said Tuesday they have entered into a definitive agreement under which Walgreens will acquire all outstanding shares of Rite Aid.
Under the agreement, Walgreens will acquire Rite Aid shares for $9 per share, for a total enterprise value of approximately $17.2 billion.
“Today’s announcement is another step in Walgreens Boots Alliance’s global development and continues our profitable growth strategy,” Walgreens Boots Alliance Executive Vice Chairman and CEO Stefano Pessina said. “In both mature and newer markets across the world, our approach is to advance and broaden the delivery of retail health, well-being and beauty products and services.”
When the acquisition is completed, Rite Aid will be a wholly owned subsidiary of Walgreens Boots Alliance. Rite Aid will initially function under its existing brand name.
“Joining together with Walgreens Boots Alliance will enhance our ability to meet the health and wellness needs of Rite Aid’s customers while also delivering significant value to our shareholders,” Rite Aid Chairman and CEO John Standley said. “This transaction is a testament to the hard work of all our associates to deliver a higher level of care to the patients and communities we serve. Together with Walgreens Boots Alliance, the Rite Aid team can continue to build upon this great work through access to increased capital that will enhance our store base and expand opportunities as part of the first global pharmacy-led, health and well-being enterprise.”
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