Walgreens to Purchase Pharmacy Files of 185 Fred's Pharmacies
September 10 2018 - 9:03AM
Dow Jones News
By Michael Dabaie
Walgreens Boots Alliance Inc. (WBA) agreed to acquire the
pharmacy patient prescription files and related pharmacy inventory
of 185 Fred's Inc. (FRED) stores located across 10 Southeastern
states.
Shares of Fred's soared 46.79% to $2.40 in recent premarket
trading.
Under the asset-purchase agreement, Walgreens would pay Fred's
$165 million, subject to adjustment, plus an amount equal to the
value of related pharmacy inventory.
Fred's will continue to operate its retail stores at most of
these locations after the pharmacies close. Once the transaction is
complete, Fred's will continue to operate about 162 pharmacies
across nearly 600 stores. Fred's pharmacy staff at the closing
locations will be able to apply for any available positions at
Walgreens.
The companies expect the file transfers to begin in the fourth
quarter and be completed in the first quarter of 2019.
"With this agreement, we have taken a major step towards
achieving one of our main goals of eliminating our debt balance,"
said Joe Anto, interim chief executive and chief financial officer
of Fred's.
Write to Michael Dabaie at michael.dabaie@wsj.com
(END) Dow Jones Newswires
September 10, 2018 08:48 ET (12:48 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
Freds (NASDAQ:FRED)
Historical Stock Chart
From Jun 2024 to Jul 2024
Freds (NASDAQ:FRED)
Historical Stock Chart
From Jul 2023 to Jul 2024
