Rite Aid
This article was originally published in The Rose Sheet
Executive Summary
Drug store chain Rite Aid will acquire Eckerd and Brooks drug stores in the U.S. from Canadian firm Jean Coutu in a transaction valued at $3.4 bil., retail company announces Aug. 24. The deal will add 1,521 Eckerd and 337 Brooks stores and six distribution centers to the Rite Aid chain, making the firm the largest drug store chain on the East Coast and strengthening its position as the third largest nationally with about 5,000 stores. All stores will be rebranded under the Rite Aid name. Under terms of the transaction, which was approved by the boards of directors of both firms, Jean Coutu will receive $1.45 bil. in cash and 250 mil. shares of Rite Aid stock. Rite Aid will assume $850 mil. of Jean Coutu's long-term debt. Michel Coutu, president of Jean Coutu's U.S. group, will become co-chair of Rite Aid's board. Jean Coutu acquired the Eckerd chain from J.C. Penney in April 2004 ("The Rose Sheet" April 12, 2004, In Brief)...