Fred's to Sell EntrustRx to CVS -- Deal Digest
May 07 2018 - 4:59PM
Dow Jones News
By Bowdeya Tweh
ACQUIRER: CVS Health Corp. (CVS), $62.79 billion market cap
SELLER: Fred's Inc. (FRED), $62 million market cap
TARGET: EntrustRx, Fred's specialty-pharmacy unit
PRICE: $40 million, plus an amount equal to inventory value
STATUS: Under agreement
RATIONALE: Fred's has been working to sell noncore assets and
Interim Chief Executive Joe Anto said in prepared remarks that
proceeds will allow the company to "pay down a significant portion
of our debt and also be used for general corporate purposes."
CLOSING: Expected to close by the end of May.
STOCK: Shares in Fred's rose 14% to $1.90 in after-hours
trading.
Write to Bowdeya Tweh at bowdeya.tweh@wsj.com
(END) Dow Jones Newswires
May 07, 2018 16:44 ET (20:44 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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