Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: Walgreen’s to acquire Rite Aid in deal valued at $17.2B, (Oct 28, 2015)

By Linda O’Brien, J.D., LL.M.

Walgreens Boots Alliance has entered into a definitive agreement to acquire U.S. retail pharmacy chain Rite Aid Corporation for $9.00 per share in cash, for a total enterprise value of approximately $17.2 billion, according to a joint announcement.

Walgreens Boots Alliance is the first global pharmacy-led, health and wellbeing enterprise. The company employs over 370,000 people and has a presence in more than 25 countries. It is the largest retail pharmacy, health and daily living destination in the U.S. and Europe.

Rite Aid Corporation is one of the nation's leading drugstore chains with nearly 4,600 stores in 31 states and the District of Columbia and fiscal 2015 revenues of $26.5 billion.

Upon completion of the merger, Rite Aid will be a wholly owned subsidiary of Walgreens Boots Alliance, and is expected to initially operate under its existing brand name.

The boards of directors of both companies have approved the transaction, which is subject to approval by Rite Aid's shareholders, the expiration or termination of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and other customary closing conditions. The transaction is expected to close in the second half of 2016.

Skadden, Arps, Slate, Meagher & Flom LLP is acting as Rite Aid’s legal counsel on transaction legal matters and Jones Day is acting as its legal counsel on antitrust regulatory matters. Simpson Thacher & Bartlett LLP is acting as Walgreen’s legal counsel on transaction legal matters and Weil, Gotshal & Manges LLP is acting as its legal counsel on antitrust regulatory matters

Companies: Walgreens Boots Alliance, Inc.; Rite Aid Corporation

News: AcquisitionsMergers Antitrust