Facebook LinkedIn Twitter Vimeo RSS

Rite Aid passes off more stores to Walgreens

By ,
(Photo / )

Rite Aid Corp. moved to transfer more of its store locations to Walgreens Boots Alliance as part of a $4.4 billion deal between the two retail pharmacy giants.

Rite Aid, headquartered in East Pennsboro Township, has transferred 625 stores under the terms of the deal announced last September. The company began transferring stores in November and expects to have transferred all 1,932 stores by this spring. Rite Aid will retain 2,569 stores in 19 states once the deal is finished.

Thus far, Rite Aid has received $1.3 billion in the deal, funds the company said will be used to pay off $970 million in outstanding secured loans. 

"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," said chairman and CEO of Rite Aid John Standley in a statement.

Once the transfer of all locations involved in the deal is complete, Walgreens is expected to close 600 of the locations. The decision was revealed in an earnings report by Walgreens, which expects to begin closing stores when the full transfer is complete. The company did not announce which stores will be closed.

Rite Aid reported $5.4 billion in revenue in its fiscal third quarter, which ended Dec. 2 of last year, down from $5.7 billion in revenue from the same quarter in 2016.

More From This Industry

Gillian Branstetter

Gillian Branstetter

Gillian Branstetter covers health care news for the Central Penn Business Journal. Email her at gbranstetter@cpbj.com.

Leave a Comment


Please note: All comments will be reviewed and may take up to 24 hours to appear on the site.

Post Comment
View Comment Policy


rita May 9, 2018 7:49 am

It moved to transfer more of its store locations to Walgreen Boor Alliance. It has transferred 625 stores under the terms of the deal announced. The company began transferring stores. The decision was revealed in an earnings report in the Alliance.washington dc tour

bs February 26, 2018 8:50 pm

With the same configuration as replica watches uk the Black Guys, its green dial watch sale network and green bezel to uk replica watches a certain extent, increased the replica watch fashion of this watch.

Austin January 25, 2018 1:42 pm

Rite Aid passes off and moved because they want to get more business and become a partner with quality essays. I think that's why they have taken this decision.