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BRIEF-Rite Aid gets regulatory clearance to sell 1,932 stores and related assets for $4.38 bln to Walgreens
September 19, 2017 / 1:07 PM / a month ago

BRIEF-Rite Aid gets regulatory clearance to sell 1,932 stores and related assets for $4.38 bln to Walgreens

Sept 19 (Reuters) - Rite Aid Corp

* Rite Aid secures regulatory clearance to sell 1,932 stores and related assets for $4.375 billion to Walgreens Boots Alliance under amended and restated agreement

* Rite Aid Corp - ‍hart-Scott-Rodino waiting period expires for proposed transaction​

* Rite Aid Corp - ‍rite Aid to significantly reduce debt and strengthen balance sheet​

* Rite Aid Corp - ‍decision to retain these stores follows discussions between Rite Aid and WBA, as well as U.S. Federal Trade Commission​

* Rite Aid Corp - ‍transaction has been approved by boards of directors of Rite Aid and WBA​

* Rite Aid Corp - will retain approximately 250 additional stores as compared to prior agreement announced between Rite Aid and WBA in June 2017​

* Rite Aid Corp - Rite Aid and WBA expect to transfer ownership of stores in phases beginning in October 2017​

* Rite Aid Corp - ‍goal of completing transfer of all stores in spring of 2018​

* Rite Aid - expects to use substantial majority of net proceeds from transaction to repay existing indebtedness

* Rite Aid Corp - ‍expects that gain it will record on sale of assets will be largely offset by its net operating loss carryforwards​

* Rite Aid - ‍immediately after completion of deal, co to continue to operate about 2,600 stores and six distribution centers as well as EnvisionRx​

* Rite Aid Corp - Rite Aid also has option to purchase generic drugs that are sourced through an affiliate of Walgreens

* Rite Aid - option to purchase generic drugs sourced through affiliate of WBA at cost substantially equivalent to Walgreens for a period of 10 years​ Source text for Eikon: Further company coverage:

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