Walgreens boosts online presence with Drugstore.com acquisition
DEERFIELD, Ill., and BELLEVUE, Wash. — Shortly after posting record second-quarter sales on Tuesday, Walgreens announced that it would "accelerate its online strategy" by acquiring e-retailer Drugstore.com for about $429 million, subject to customary conditions.
“Our acquisition of Drugstore.com significantly accelerates our online strategy to leverage the best community store network in America by becoming the most convenient choice for health and daily living needs, whether customers shop online or in our stores,” Walgreens president and CEO Greg Wasson said.
“This acquisition offers a unique opportunity that will provide us immediate access to more than 3 million savvy, online loyal customers, and will allow us to move even closer to our existing customers through relationships with new vendors and partners, adding approximately 60,000 products to our already strong online offering," Wasson added.
Under the agreement, Drugstore.com stockholders will receive $3.80 in cash for each share of stock, representing a total of about $429 million; a price about $27 million less than the online retailer’s 2010 U.S. sales, according to Online Retailer. The price per share, Walgreens noted, is a premium of about 102% over Drugstore.com’s 30-day average closing stock price, and a premium of approximately 113% over the closing price of Drugstore.com’s common stock on March 23, the last trading day prior to the announcement.
Walgreens noted that the deal is subject to customary conditions, and expects the acquisition to close by the end of June.
Earlier this month, the drug store chain announced it would sell off to Catalyst Health Solutions its pharmacy benefit management business — which carried a price tag of about $525 million in cash — to focus on core strategies.
Snapping up Drugstore.com and its assets — which include the namesake site, along with Beauty.com, SkinStore.com and VisionDirect.com — will "complement and extend many of our own multichannel initiatives that have been driving growth in our business," Wasson said. "As a result, we are positioned better than ever to be the most convenient multichannel retailer of health and daily living needs in America — offering customers what they want, when they want it and where they want it.”
Drugstore.com’s board of directors unanimously approved the definitive agreement. Dawn Lepore, Drugstore.com CEO and chairman, said that the company’s growth strategy was perfectly aligned with Walgreens’, and that she was confident that the drug store chain would achieve Drugstore.com’s vision and growth opportunities.
“We believe the acquisition of Drugstore.com by Walgreens is a great fit for all of our constituencies,” Lepore said. “Our goal consistently has been to create value for our customers, employees and shareholders. We believe we have made significant progress over the last six years and built an organization with a broad and deep bench of Internet experience. The opportunity to become a part of Walgreens is the right next step in this journey.”
Meijer kicks off eighth Simply Give campaign
GRAND RAPIDS, Mich. — Meijer is continuing its pantry donation program by kicking off a springtime campaign.
The Midwest retailer is once again teaming up with its customers and team members in implementing its Simply Give program to help restock the shelves of nearly 200 local food pantries in Michigan, Ohio, Illinois, Indiana and Kentucky.
This marks Meijer’s eighth Simply Give effort, which began on March 20 and will continue through May 14.
Walmart shows commitment to seniors with Meals on Wheels donation
BENTONVILLE, Ark. — The Walmart Foundation has donated $5 million to the Meals On Wheels Association of America to help fight senior hunger in communities across the nation.
Through the grant, MOWAA will boost the efforts of senior nutrition programs, organizations that provide critical services to more than 6 million seniors in the United States currently facing the threat of hunger.
"We know that seniors are among those hardest hit by hunger in this country. Many are home-bound and rely on neighbors and community volunteer programs like Meals On Wheels to help put food on the table," said Margaret McKenna, president of the Walmart Foundation. "Through this $5 million grant, we hope to bring additional attention to senior hunger and help ensure our parents, grandparents and friends who have added so much to our lives have access to healthy and nutritious food."
Part of Walmart’s $2 billion commitment to support hunger relief efforts through 2015, MOWAA will use the funding in several ways, including:
Funding "Walmart Foundation-MOWAA Building the Future" grants to help more than 100 local Meals On Wheels programs purchase stoves, refrigerators, trucks and other equipment needed in the fight to end senior hunger in local communities;
Forming the Walmart Institute for Senior Nutrition Education, a new training initiative consisting of Senior Nutrition Certificate program training sessions and online resources for senior nutrition professionals and the general public; and
Creating the MOWAA state-affiliated Training Wheels program to help organize additional MOWAA affiliated state associations across the United States.
"At Meals On Wheels, our goal is to deliver meals so that no senior goes hungry," said Enid Borden, president and CEO of Meals On Wheels Association of America. "We are thankful to Walmart and appreciate their assistance as a long-standing partner in our efforts to reduce and ultimately end senior hunger in the U.S. With this grant and their continued support, we will be able to make a difference for the thousands of seniors in America who are going to bed hungry right now."