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Walgreens, Rite Aid Call Off Merger, Forge Acquisition Deal

Nearly 2,200 Rite Aid locations will make the transition to the Walgreens brand, with the stores coming into the Walgreens Boots Alliance fold on a phased basis.

Exterior of Rite Aid store A Rite Aid store in Buffalo, NY. (Photo: Wierzba Masonry)

DEERFIELD, IL—Walgreens Boots Alliance Inc. and Rite Aid have called off the merger that would have created a drugstore behemoth of about 18,000 locations. Instead, WBA said Thursday it would purchase 2,186 stores, three distribution centers and related inventory from Rite Aid for $5.175 billion in cash.

The agreement between WBA and Rite Aid calls for WBA to assume the related real estate leases and grants Rite Aid an option through May 2019 to become a member of WBA’s group purchasing organization, Walgreens Boots Alliance Development GmbH. WBA will also assume certain limited store-related liabilities as part of the new transaction.

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Paul Bubny

Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.

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