Marketing Analysis : Walgreen 's Acquisition Of Rite Aid

1181 Words5 Pages
Jackie Sze
Finance 4610
Professor Wang
November 8, 2015
Walgreen’s Acquisition of Rite-Aid

One of the biggest acquisition of the year is the mega-merger between Walgreens and Rite-Aid. In this event, Walgreens acquired Rite-Aid for $17.2 billion split between $9.4 billion in equity ($9 a share representing a 48% premium of the market price) and the rest in debt. This acquisition will not only make Walgreens the largest pharmaceutical chain in the country but will also raise issues with antitrust laws. To further understand this news, we will need to have an overview on Walgreens. Walgreens is a pharmacy-led health and wellbeing company that started as a drugstore in Chicago in 1901. The company grew into a multibillion dollar institution over the century through expansion and acquisition of local drugstore chains and healthcare systems/providers. Some of the widely recognized brands it acquired include, Duane Reade, Happy Harry’s drugstore, and The company operates through three segments: Retail Pharmacy USA, Retail Pharmacy International, and Pharmaceutical Wholesale. The Retail Pharmacy USA segment sells prescription drugs and an assortment of general merchandise, including non-prescription drugs, beauty products, photo finishing, seasonal merchandise, greeting cards, and convenience foods through its retail drugstores and convenient care clinics. It also provides specialty pharmacy services; and manages in-store clinics under the brand Healthcare Clinic.

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