The Pharmacy Wars: Walgreens Buys Rite Aid For $17.2 Billion

Your choice of pharmacies may be about to get significantly smaller next year.

On Tuesday, the Walgreens Boots Alliance – the parent company that owns Walgreens and Duane Reade – announced that it had purchased the Rite Aid Corporation for a whopping $17.2 billion.

Bloomfield has a Rite Aid located at 77-105 Bloomfield Ave.

In addition, there are more than a dozen other locations scattered throughout Essex County, including Irvington, Newark, Nutley, East Orange, South Orange and West Orange.

According to a company statement, the boards of directors of both corporations have approved the transaction, which is subject to approval by the holders of Rite Aid’s common stock, the expiration or termination of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary closing conditions.

The transaction is expected to close in the second half of calendar 2016, according to the Walgreens Boots Alliance.

The company announced that upon completion of the merger, Rite Aid will be a wholly owned subsidiary of Walgreens Boots Alliance, and is expected to initially operate under its existing brand name.

“Working together, decisions will be made over time regarding the integration of the two companies, ultimately creating a fully harmonized portfolio of stores and infrastructure,” the Walgreens Boots Alliance stated.

Walgreens Boots Alliance expects to finance the transaction through a combination of existing cash, assumption of existing Rite Aid debt and issuance of new debt.

File photo courtesy of Mike Mozart via flickr