Retail News Breaks
Walgreens to buy assets of 17 stores from USA Drug
March 18th, 2010
Walgreens is buying Rx files from Super D stores in the Memphis, Tenn., area.
DEERFIELD, Ill. – Walgreen Co. plans to acquire prescription files and other assets of 17 Ike's and Super D drug stores in the Memphis, Tenn., area from USA Drug.
Walgreens said Thursday that under the deal it will purchase the prescription files at each of the 17 locations and transfer them to nearby Walgreens pharmacies. In addition, Walgreens is in talks with USA Drug to acquire and continue to operate the two remaining Ike's stores and said it expects to retain most of the stores' employees.
Financial terms of the agreement weren't disclosed. Patients whose prescriptions are being transferred will be notified by letter once the transaction has been completed later this month, Walgreens said.
"We have a long history of providing high-quality pharmacy services in the Memphis area with our first store in the city opening in 1927," Connie Latta, Walgreens' Tennessee market vice president, said in a statement. "Our staffs are ready to make the transition as seamless as possible for our new customers. We look forward to introducing them to the unique offerings that have made Walgreens one of the country's most trusted providers of health and wellness services and basic needs."
Pine Bluff, Ark.-based USA Drug has about 140 drug stores in Oklahoma, Arkansas, Tennessee, Mississippi and Missouri under the banners USA Drug, Super D Drugs, May's Drug Stores, Drug Warehouse, Med-X Drugs and Ike's Discount stores.
The deal marks Walgreens' second acquisition in the past month and continues a strategy of making acquisitions in areas where it can fill out its store base or quickly become a market leader.
In mid-February, Walgreens inked a $1.08 billion agreement to buy metropolitan New York drug chain Duane Reade, which has more than 250 stores. And just weeks before that blockbuster deal, Walgreens agreed to buy three Farmacias El Amal stores in Puerto Rico as well as prescription files from 11 other El Amal pharmacies, and the Deerfield, Ill.-based chain unveiled a deal to acquire Snyders Drug Stores' 25 company-owned stores in Minnesota from Katz Group North America.
Walgreens also made several acquisitions in 2009. In late October, the retailer inked a deal to purchase 12 Eaton Apothecary pharmacies in the Boston area from D.A.W. Inc., an agreement that closed in February. Last March, the company announced a deal to buy about 30 stores from Drug Fair in New Jersey and, in February, unveiled an agreement to acquire seven Rite Aid stores in San Francisco and five Rite Aid locations in Idaho.
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