Walgreens to acquire mid-South drug store chain
DEERFIELD, Ill. — Walgreens has entered into an agreement to acquire a regional drug store chain for approximately $438 million.
Walgreens said it will acquire 144 stores — currently operated under USA Drug, Super D Drug, May’s Drug, Med-X and Drug Warehouse banners, located in Arkansas, Kansas, Mississippi, Missouri, New Jersey, Oklahoma and Tennessee — as well as corporate offices, a distribution center located in Pine Bluff, Ark., and a wholesale and private-brand business from Stephen L. LaFrance Holdings and members of the LaFrance family. Walgreens said that the acquired drug stores will continue to operate under their current brand names after the transaction closes, and decisions will be made over time regarding the best, most effective way to harmonize Walgreens and the acquired brands.
The latest announcement follows Walgreens’ blockbuster deal with Alliance Boots, which will position the companies as the first and largest global retail pharmacy player.
"This acquisition expands our business in an important region of the country," Walgreens President and CEO Greg Wasson said. "It will provide significant new pharmacy business for us in this region while also enabling us to bring the Walgreens experience to many additional smaller communities where USA Drug has developed strong operational expertise."
Stephen LaFrance, who serves as owner and chairman of Stephen L. LaFrance Holdings, said the decision to sell the chain — which recorded sales of $825 million in 2011 — was "not only because it is the premier drug store company in [our] industry, but also because Walgreens will continue to provide [our] customers with the service and products they have come to expect."
The transaction is structured as a purchase of the stock of Stephen L. LaFrance Holdings, which owns most of the acquired business, and also includes the purchase of assets or stock of certain affiliated companies or stores and other parts of the business that are not owned by that holding company. It is subject to satisfaction of regulatory requirements and other closing conditions, and is expected to close around Sept. 1. Walgreens currently expects that the transaction will not have a material impact on earnings per share in fiscal year 2012.
USA Drug ranked No. 31 on the DSN PoweRx 50, with projected pharmacy sales of approximately $409 million in 2011. For a complete USA Drug profile, see DSN PoweRx Players 2012.
Reports: The Apothecary Shops buys Colorado pharmacy
NEW YORK — Specialty pharmacy provider The Apothecary Shops has acquired a Denver-based pharmacy, according to published reports.
The Phoenix Business Journal reported Tuesday that the company had acquired Colorado Pharmacy, making it the company’s 17th.
The newspaper also reported that The Apothecary Shops would would change its name to Avella Specialty Pharmacy and rebrand its stores in August, quoting VP operations Randle House as saying the plan was to bring several company names under one umbrella.
Tide honors Team USA with flag
CINCINNATI — As part of its "My Story. Our Flag." project, Tide unveiled a special flag — created in honor of Team USA — in New York’s Bryant Park on Tuesday.
The 117-ft.-by-52-ft. flag, a larger-than-life artistic rendition of the American flag, features nearly 1,500 stories collected from Tide’s Facebook and Twitter followers. Each piece of fabric making up the flag was washed in Tide prior to being sewn together, the brand said.
"Every two years during the Olympic Games, the pride we have for the red, white and blue swells as people celebrate our country’s athletes," said Alex Keith, VP of P&G North American fabric care. "We’re excited to honor Team USA with this beautiful flag created for the ‘My Story. Our Flag.’ project."
As part of the project, Tide has partnered with three Olympic athletes — including distance runner Lopez Lomong, cyclist Sarah Hammer and wrestler Henry Cejudo — and actress and singer Katharine McPhee, all of which have inspiring stories that Tide said are great examples of the rich and diverse stories we all have.
I am so thrilled to be a part of this inspirational flag," Katharine McPhee said. "To see what the red, white and blue mean to Americans across this country truly reminds us why it’s so great to be an American and gets me very excited to root on Team USA during this year’s Olympic Games."