Genovese Drug
This article was originally published in The Rose Sheet
Executive Summary
J.C. Penney will purchase the drug chain for $432 mil. in equity and a $60 mil. assumption of debt. The New York City metropolitan area pharmacy chain of 141 retail stores will become part of Penney's Eckerd drug store operation, expanding the chain to 2,900 stores in 20 states across the Northeast, Midwest and the Sunbelt. The acquisition of Melville, N.Y.-based Genovese "will add the key to the New York City and Nassau/Suffolk County markets" to Eckerd's business, J.C. Penney says. Fiscal 1999 sales for the combined operation are expected to total more than $12 bil. Penney acquired Eckerd in 1997. The Genovese transaction is expected to be "mildly dilutive" in 1999, Penney adds, but "modestly accretive" in 2000, its first full year of integration
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