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Walgreens closes acquisition of Kerr Drug
November 8th, 2013
DEERFIELD, Ill. – Walgreen Co. has finalized its deal to acquire regional drug chain Kerr Drug, which has 76 stores in North Carolina.
Walgreens said Friday that, under the agreement announced in September, the acquisition is an asset transaction that includes Kerr's retail drug stores, specialty pharmacy business and a distribution center.
Financial terms of the deal weren't disclosed. In its 2012 fiscal year, Kerr posted sales of $381 million for its retail drug store and specialty pharmacy businesses.
Plans call for the acquired stores to retain the Kerr Drug name for the near term. When the acquisition deal was announced, the companies said that over time decisions will be made about how to best integrate the stores and specialty pharmacy business with Walgreens' operations.
Under the agreement, Kerr retained ownership of its long-term care pharmacy business.
The acquisition significantly boosts Walgreens' presence in fast-growing markets of North Carolina, adding 76 locations to its approximately 200 drug stores in the state, compared with 311 for CVS Caremark Corp. and 224 for Rite Aid Corp.
The addition of Kerr's retail locations lifts Walgreens' total drug store count over the 8,200 mark.
Kerr's sale continues the consolidation trend in the chain drug industry, which remains dominated by the three largest traditional drug store retailers — Walgreens, CVS/pharmacy and Rite Aid — as the number of regional chains dwindles.
Of traditional U.S. drug chains, Kerr was one of the largest regional operators by store count, exceeded only by Kinney Drugs (95 stores) and Thrifty White Pharmacy (90 stores).
Among traditional drug chains, other U.S. regional players with at least 30 stores include Discount Drug Mart (72 stores), Bartell Drugs (61 stores), Lewis Drug (35 stores), Hi-School Pharmacy (35 stores) and Navarro Discount Pharmacy (33 stores).