Nearly 900 Rite Aid stores are being unloaded in a sale meant to allow the Illinois-based Walgreens to inch closer to acquiring the Camp Hill, Pennsylvania-based pharmacy chain.
The two companies announced on Tuesday morning 865 Rite Aid stores will be sold to Tennessee-based Fred's Pharmacy for $950 million.
The sale is in response to concerns expressed by the Federal Trade Commission in its review of Walgreens Boots Alliance's (NASDAQ: WBA) acquisition of Rite Aid – a buy first announced in October of last year.
The $950 million all-cash deal is expected to close in the first half of 2017, pending the approval of Walgreens’ acquisition of Rite Aid.
“Walgreens Boots Alliance is actively engaged in discussions with the (Federal Trade Commission) regarding the transaction and is working toward a close of the Rite Aid acquisition in early calendar 2017,” the companies said in a news release.
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