They had been the third largest. In May, CVS acquired Omnicare, the nation’s largest provider of prescription meds to those in long-term care, for $12.7 billion.
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For the consumer, that means that the chain’s surviving stores may wind up carrying fewer brands going forward, maybe three different kinds of soda instead of five. Here’s how the deal could affect shoppers.
Walgreens expects to fund the deal through a combination of existing cash, assumption of existing Rite Aid debt and issuance of new debt. CEO Stefano Pessina said when the deal goes through, it will allow Walgreens to provide “more health and wellness solutions in stores and online”.
But, the annual 2015 report of Rite Aid, supports claims that they aren’t the best operation with many stores underperforming. “There are less companies negotiating with the pharmacy managers, and there are less companies negotiating with the pharmaceutical companies”. On Monday, Bridgestone announced it was buying and merging with rival Pep Boys, in a deal valued at $835 million. These independent community pharmacies will also continue to stand out for their sterling customer service and for providing a range of niche health care services to meet important patient needs.
The deal made sense at this time as the company was facing “tough challenges” in all its markets, either from competitors or from the government’s “relentless” drive to manage healthcare costs, Pessina said.
Walgreens in April launched a plan to cut $1.5 billion in costs by the end of fiscal 2017, which would include store closures and freezing salary hikes for senior USA executives.
Image: Rite Aid chain bought by Walgreens.
Walgreens and Rite Aid, which have been suffering due to drug-price inflation, could reap benefits of savings from this acquisition. “I’m wondering if I’ll get the same price at Walgreens”.
According to Rite Aid’s video on Youtube, the ice cream was first sold in Thrifty drug stores in the 1930’s.
If approved by regulators, the deal would see two of the biggest United States drug stores combined.
And what about Thrifty’s ice cream?
Walgreens stated that the deal will be financed through a mixed bag of measures including cash, deleting existing debts of Rite Aid and opening of crediting lines.
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“It’s consistent”, said Siganporia, a consultant, of Walgreens products.
