Walgreen Buys Another Drugstore Chain

The company will spend $438 million to expand in Mid-South region

   

Walgreen (NYSE:WAG) announced today that it will purchase 144 drugstores owned by Stephen L. LaFrance Holdings for $438 million. This is the second significant purchase by Walgreen in as many months. In June, it acquired Europe’s Alliance Boots GmbH for $6.7 billion.

The LaFrance Holdings’ stores, which operate under a variety of names, including May’s Drug, Super D Drug, USA Drug, Drug Warehouse and Med-X, serve mostly rural communities in Arkansas, Kansas, Mississippi, Missouri, New Jersey, Oklahoma and Tennessee, The Wall Street Journal notes.

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The deal is expected to close in September. The 144 stores in the transaction posted $825 million in sales last year, and will maintain their current names. Walgreen officials said the purchase would enhance its pharmacy business in the Mid-South region, but wouldn’t affect its financial results for the current fiscal year.

Shares of Walgreen rose fractionally in early Thursday trading.


Article printed from InvestorPlace Media, http://investorplace.com/2012/07/walgreen-to-buy-regional-drug-store-chain/.

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