Walgreens to Acquire Kerr Drug's Retail Drugstores and Specialty Pharmacy Business
- Acquisition advances Walgreens strategies to deliver the Well
Experience for customers and transform community pharmacy
- Transaction expands Walgreens presence in North Carolina including
DEERFIELD, Ill. & RALEIGH, N.C.--(BUSINESS WIRE)--
Walgreen Co. (NYSE:WAG) (NASDAQ:WAG) and Kerr Drug, a privately held
regional pharmacy chain in North Carolina, announced today that they
have entered into a definitive agreement under which Walgreens would
acquire certain assets of Kerr Drug's retail drugstores and specialty
pharmacy business. Financial terms of the agreement were not disclosed.
In fiscal year 2012, Kerr Drug's retail drugstores and specialty
pharmacy business recorded total sales of $381 million.
The acquisition advances Walgreens strategy to deliver the Well
Experience for customers by expanding Walgreens presence in North
Carolina, a fast-growing market, including into many smaller
communities. Kerr Drug's standard of innovation and excellence in
pharmacy service also aligns well with Walgreens strategy to transform
the role community pharmacy plays in health care.
"The Kerr Drug retail drugstores and specialty pharmacy business are an
exceptional addition to the Walgreens family of companies," said
Walgreens President and CEO Greg Wasson. "We are closely aligned on the
important task of expanding the health care role that community
pharmacists can have with their patients, and we share the common goal
of stepping out of the traditional drugstore format to create a new
experience for our customers."
Kerr Drug Chairman, President and CEO Anthony Civello said, "Kerr Drug's
strategy and core principles have always been focused on its unique
ability to provide patients access to the most comprehensive and
convenient health and wellness offering in the industry. Walgreens is
the perfect partner to continue this journey as a patient-oriented
company dedicated to expanding the role of the pharmacist as an integral
part of health care."
The acquisition is structured as an asset transaction and includes Kerr
Drug's 76 retail drugstores and its specialty pharmacy business. The
acquisition also includes a distribution center. Kerr Drug will retain
ownership of its long-term care pharmacy business.
The transaction is subject to satisfaction of regulatory requirements
and other conditions, and is expected to close sometime this year.
Walgreens anticipates the transaction will not have a material impact on
earnings per share in fiscal year 2014.
Until the acquisition closes, Kerr Drug and Walgreens will continue to
operate separately. After closing, the acquired Kerr Drug retail
drugstores will continue to operate under their current brand in the
near term. Decisions will be made over time regarding the best, most
effective way to integrate Kerr Drug's retail drugstores and specialty
pharmacy business with Walgreens operations.
As the nation's largest drugstore chain with fiscal 2012 sales of $72
billion, Walgreens (www.walgreens.com)
vision is to become America's first choice for health and daily living.
Each day, Walgreens provides more than 6 million customers the most
convenient, multichannel access to consumer goods and services and
trusted, cost-effective pharmacy, health and wellness services and
advice in communities across America. Walgreens scope of pharmacy
services includes retail, specialty, infusion, medical facility and mail
service, along with respiratory services. These services improve health
outcomes and lower costs for payers including employers, managed care
organizations, health systems, pharmacy benefit managers and the public
sector. The company operates 8,117 drugstores in all 50 states, the
District of Columbia and Puerto Rico. Take Care Health Systems is a
Walgreens subsidiary that is the largest and most comprehensive manager
of worksite health and wellness centers and in-store convenient care
clinics, with more than 700 locations throughout the country.
About Kerr Drug
Kerr Drug was founded by pharmacist Banks Kerr in 1951 and for the past
62 years has served the customers of North Carolina. Kerr Drug is one of
the most recognized and respected names in the chain drug industry. With
its roots in the Carolinas and headquarters in Raleigh, N.C., Kerr
Drug's strategic direction is founded in its unique ability to provide
patients, the medical community and health plans access to the most
comprehensive and convenient health and wellness offering in the
industry. With a mission to be the most comprehensive provider of
pharmacy and related health care services, while continuing to be the
most reliable provider of health-related and convenience items, Kerr
Drug is currently providing services that far exceed the traditional
Cautionary Note Regarding Forward-looking
Statements: Statements in this press release that are not
historical are forward-looking statements made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of
1995. Words such as "expect," "likely," "outlook," "forecast," "would,"
"could," "should," "can," "will," "project," "intend," "plan,"
"continue," "sustain," "synergy," "on track," "believe," "seek,"
"estimate," "anticipate," "may," "possible," "assume," variations of
such words and similar expressions are intended to identify such
forward-looking statements. These statements are not guarantees of
future performance and are subject to risks, uncertainties and
assumptions that could cause actual results to vary materially from
those indicated, including: the ability to satisfy the closing
conditions and consummate the proposed transactions on a timely basis or
at all, the ability to successfully integrate the acquired business, the
ability to realize anticipated synergies, the ability to achieve
anticipated financial results, changes in vendor, payer and customer
relationships and terms, and other factors described in Item 1A (Risk
Factors) of Walgreens most recent Annual Report on Form 10-K and
Quarterly Report on Form 10-Q, each of which is incorporated herein by
reference and in other documents that Walgreens files or furnishes with
the Securities and Exchange Commission. Should one or more of these
risks or uncertainties materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those indicated
or anticipated by such forward-looking statements. Accordingly, you are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date they are made. Except to the
extent required by law, Walgreens does not undertake, and expressly
disclaims, any duty or obligation to update publicly any forward-looking
statement after the date of this report, whether as a result of new
information, future events, changes in assumptions or otherwise.
Source: Walgreen Co. and Kerr Drug