Rite Aid Buys Bartell Drugs For $95 Million

SEATTLE, WA — Rite Aid will buy Seattle-based Bartell Drugs for $95 million, ending a 130-year run of family ownership, both companies announced Wednesday morning.

Under the agreement, all 67 Bartell stores will join Rite Aid's 69 Seattle-area stores, but continue to operate using Bartell's name and branding. According to a news release, Bartell locations generate more than $550 million in revenue and fill an estimated 5.5 million prescriptions every year.

"Looking forward to a future with Rite Aid, we are excited about the opportunity to expand upon our mission to be the best neighborhood drug store in the Pacific Northwest," said George D. Bartell, the company's chairman. "Rite Aid's vision fits well with what we think will best serve the needs of our customers."

According to Rite Aid, acquiring Bartell Drugs will allow it to better serve customers in King, Pierce and Snohomish counties and improve access to health care.

"For more than a century, Bartell's has been an integral part of the fabric of Seattle and neighboring communities serving families with pharmacy services while promoting the health and well-being of local communities," said Heyward Donigan, Rite Aid CEO. "The acquisition of Bartell's fits perfectly into and accelerates our RxEvolution strategy, as our companies share a commitment to total health and wellness, the importance of the pharmacist as a trusted health advisor and the critical role the neighborhood pharmacy plays."

In a letter addressed to customers, Bartell's leadership said a changing economic landscape made it complicated to keep the family business running.

"Over the past few years, it has become increasingly difficult for a mid-sized drugstore chain to operate independently," the letter reads in part. "Changes in the pharmacy world, business tax increases and the pandemic created very strong headwinds for us. We knew we needed to do something to re-shape Bartell's future."

The deal is expected to close by the end of the 2021 fiscal year and will be subject to regulatory approvals, the companies said. Rite Aid, headquartered in Pennsylvania, operates 2,400 retail pharmacy locations in 18 states.