The Firm is representing Walgreens Boots Alliance, Inc. (NASDAQ: WBA) in connection with its acquisition of 2,186 stores and certain distribution centers and other related assets from Rite Aid Corporation (NYSE: RAD) for an all-cash purchase price of $5.175 billion. Under the terms of the agreement, Rite Aid also has the option to purchase pharmaceutical drugs through an affiliate of Walgreens Boots Alliance under terms substantially equivalent to Walgreens for a period of 10 years.
The Firm previously represented Walgreens Boots Alliance in connection with its proposed acquisition of Rite Aid in an all-cash transaction pursuant to an existing merger agreement announced on October 27, 2015 and amended on January 29, 2017. The merger agreement was terminated in connection with the announcement of this asset purchase transaction following feedback received from the Federal Trade Commission. In connection with the termination, Walgreens Boots Alliance has agreed to pay Rite Aid a termination fee of $325 million. The existing divestiture agreement between Walgreens Boots Alliance, Rite Aid and Fred’s, Inc. (NASDAQ: FRED) was also terminated.
Walgreens Boots Alliance is a global pharmacy-led health and wellbeing enterprise, created through the combination of Walgreens and Alliance Boots in December 2014. The company employs more than 400,000 people in more than 25 countries, and is the largest retail pharmacy, health and daily living destination in the U.S. and Europe with sales of $117.4 billion in the fiscal year ended August 31, 2016. Rite Aid is the third largest retail drugstore chain in the U.S. with approximately 4,500 stores in 31 states and D.C., and fiscal 2017 revenues of $32.8 billion.
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