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CAMP HILL, Pa. — Rite Aid Corp. has transferred ownership of nearly a third of the stores sold to Walgreens Boots Alliance (WBA) under a $4.375 billion deal announced in September.
Rite Aid said late Monday that WBA has taken ownership of 625 stores and related assets thus far, for which it has paid Rite Aid about $1.31 billion. Rite Aid reported that the cash proceeds are being used to repay all of its $970 million of outstanding secured loans and maintain a strong liquidity position.
Under the Rite Aid asset sale, WBA agreed to buy 1,932 stores, three distribution centers and related inventory from Rite Aid.
“Our teams continue to make tremendous progress in transferring stores to WBA, and I want to thank them for their ongoing commitment and dedication,” Rite Aid chairman and chief executive officer John Standley said in a statement. “We are on track to complete the transfer of stores in the spring of this year. Going forward, we remain focused on the continued smooth execution of that process and capitalizing on our most significant business-building opportunities as we work together to deliver a great experience to our customers and patients and drive value for our shareholders.”
Rite Aid added that most of the closing conditions for the agreement with WBA have been satisfied, and the subsequent transfers of Rite Aid stores and related assets remain subject to minimal customary closing conditions.
Upon completion of the asset sale, Rite Aid will have 2,569 drug stores — with a strong presence in California, Pennsylvania, Michigan, Ohio, New York, New Jersey, Washington and Oregon — that will be served by six distribution centers, according to company executives. The $22 billion company will generate more than 180 million prescriptions annually and provide expanded pharmacy and health services, including retail clinic operator RediClinic, health care management specialist Health Dialog and pharmacy benefit manager EnvisionRxOptions, which manages over 4 million lives.
