Albertsons, the US grocery retailer, has announced that it has reached an agreement to merge with Rite Aid, a leading pharmacy chain, in a cash and stock deal.
Rite Aid shareholders will own a 28 to 29.6% stake in the combined company, whilst current Albertsons shareholders will own a stake from 70.4 percent to 72 percent in the combined company, upon the closure of the merger.
“The combination will provide customers with flexible and convenient access to a full range of food, health, and wellness offerings and will deliver significant value to customers, employees, and shareholders”, Albertsons said in a statement.
Commenting on the deal, Albertsons chairman and CEO Bob Miller said: “The hallmark of Albertsons Companies’ business has been to become the favorite local supermarket of our customers. We have always put our customers first, and our combination with Rite Aid will enable us to even better serve the valuable pharmacy customer by providing a fully integrated one-stop-shop for our customers’ food, health, and wellness needs”.
Rite Aid CEO John Standley will become the CEO of the integrated company, which will operate approximately 4,900 locations, 4,350 pharmacy counters, and 320 clinics across 38 states.