Kerr Drug, a privately held regional drug store chain in North Carolina, and Walgreen Co. have announced that they have entered into a definitive acquisition agreement. In the deal as stated, structured as an asset transaction, Walgreens would acquire Kerr Drug’s 76 retail drugstores and its specialty pharmacy business, as well as a distribution center.
Kerr Drug retains ownership of its long-term care pharmacy business, the companies added.
The parties did not disclose the financial terms of the agreement. In its 2012 fiscal year, Kerr Drug’s retail drugstores and specialty pharmacy business recorded total sales of $381 million, according to the companies.
“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 in comments on the acquisition. “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.”
The companies pointed out that the transaction must satisfy regulatory requirements and other conditions but is expected to close sometime this year. Walgreens maintained that it anticipates the transaction will not have a material impact on earnings per share in fiscal year 2014.