CAMP HILL, Pa. — Rite Aid Corp. has completed the transfer of more than half of the stores it agreed to sell to Walgreens Boots Alliance last fall.
Rite Aid said that, as of Feb. 8, it has transferred ownership of 1,114 stores and related assets to Walgreens Boots Alliance for cash proceeds of $2.424 billion.
Under the Rite Aid asset sale announced on Sept. 18, WBA agreed to acquire 1,932 stores, three distribution centers and related inventory for $4.375 billion in cash. Rite Aid has said it plans to use the proceeds to pay down debt.
“We have now completed more than half of the planned store transfers and remain on track to finish the process in the spring of this year,” Rite Aid chairman and chief executive officer John Standley said in a statement. “As we work to complete this process, we remain focused on opportunities to build our business while delivering a great experience to our customers and patients and driving value for our shareholders.”
Rite Aid added that most of the closing conditions for the agreement with WBA have been met, and the subsequent transfers of Rite Aid stores and related assets are subject to minimal customary closing conditions.
Upon completion of the deal with WBA, Rite Aid will have 2,569 drug stores served by six distribution centers.
Besides having a retail pharmacy base with a strong presence in California, Pennsylvania, Michigan, Ohio, New York, New Jersey, Washington and Oregon, the $22 billion company will provide expanded pharmacy and health services through subsidiaries RediClinic (in-store clinics), Health Dialog (health care management) and EnvisionRxOptions (pharmacy benefit management and other services).