Rite Aid: Transfer of stores to Walgreens on ‘track’

Rite Aid’s transfer of stores to Walgreens Boots Alliance is expected to be complete in spring of this year.

Rite Aid reported the successful transfer of 625 of its stores and related assets to Walgreens Boots Alliance. The company said it has received cash proceeds of $1.3 billion, which it is using to repay all of its $970 million of outstanding secured loans while maintaining a strong liquidity position.

“Our teams continue to make tremendous progress in transferring stores to WBA and I want to thank them for their ongoing commitment and dedication,” said John Standley, chairman and CEO, Rite Aid. “We are on track to complete the transfer of stores in the spring of this year. 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.”

Walgreens is purchasing a total of 1,932 stores, three distribution centers and related inventory from Rite Aid for an all-cash purchase price of $4.4 billion on a cash-free, debt-free basis.

The majority of the closing conditions have been satisfied, and the subsequent transfers of Rite Aid stores and related assets remain subject to minimal customary closing conditions applicable only to the stores being transferred at such subsequent closing.