Walgreens reaches agreement to buy USA Drug Pharmacy Chain of Stores

(Best Syndication News) - Walgreens Co. (NYSE:WAG, NASDAQ:WAG) announced that they have reached an agreement with Stephen L. LaFrance Holdings, Inc. and members of the LaFrance family to acquire 144 stores that operate under the names USA Drug, Super D Drug, May’s Drug, Med0X, and Drug Warehouse. The drugstores operate in Arkansas, Kansas, Mississippi, Missouri, New Jersey, Oklahoma, and Tennessee.

The purchase price is estimated to be around $438 million, but could be adjusted in certain conditions. The purchase of the stores will also include corporate offices, and a distribution center in Pine Bluff, Arkansas. There is also a wholesale and private brand business that will be part of the purchase.

Walgreens President and CEO, Greg Wasson, said that buying these stores would help them expand their business in an important area of the country. Walgreens would be able to have a presence in small towns.

The stores will stay operating under the USA Drug names until the transaction is complete. Once the transaction is complete, Walgreens will then determine if they will change the stores over to their name.

The purchase of the drugstore chain is subject to regulatory requirements and other closing terms. Walgreens anticipates that the transaction should be completed around September 1, 2012.

Walgreens NYSE shares closed at $29.87, up $0.26 (+0.88%).

By: Dave Reddy

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