Walgreens Boots Alliance To Purchase Rite Aid In $17.2 Bln Deal - Quick Facts

(RTTNews) - Walgreens Boots Alliance, Inc. (WBA) has entered into a definitive agreement to acquire all outstanding shares of Rite Aid Corp. (RAD), a U.S. retail pharmacy chain, for a total enterprise value of approximately $17.2 billion, including acquired net debt.

Rite Aid shareholders will receive $9.00 per share in cash, a premium of 48 percent to the closing price on 26 October 2015. The transaction is expected to close in the second half of calendar 2016.

Walgreens Boots Alliance expects this transaction to be accretive to adjusted earnings per share in its first full year after completion. Additionally, Walgreens Boots Alliance expects to realize synergies in excess of $1 billion.

Rite Aid will be a wholly owned subsidiary of Walgreens Boots Alliance and is expected to initially operate under its existing brand name. Walgreens Boots Alliance expects to finance this transaction through a combination of existing cash, assumption of existing Rite Aid debt and issuance of new debt.