Walgreens Boots snaps up Rite Aid

Boots Opticians parent group Walgreens Boots Alliance has agreed to acquire US retail pharmacy chain Rite Aid for around $17.2bn.

The deal, subject to approval by Rite Aid shareholders, would deliver ‘a high-quality retail pharmacy choice for US consumers in an evolving and increasingly personalised healthcare environment’, a statement said.

Walgreens Boots Alliance expected to finance the transaction through a combination of existing cash, assumption of existing Rite Aid debt and issuance of new debt.

The group also posted financial results for its fourth quarter and financial year ended August 31.

For the fiscal year 2015, the group’s net earnings increased 118.4 per cent to $4.2bn, compared with the same period a year ago. Net sales for the year increased 35.4 per cent to $103.4bn.