by Christopher Freeburn | July 5, 2012 11:02 am
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.
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.
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