Fred’s, Inc. has announced that it signed an agreement to acquire Reeves-Sain Drug Store, Inc., a private specialty and retail pharmacy company with one store in Murfreesboro, TN, and a specialty pharmacy business operating under the name EntrustRX.
Under terms of the agreement, Fred’s will acquire EntrustRx and the retail pharmacy for approximately $66 million, with a cash payment of $53 million and a note for $13 million, the company stated. Fred’s added that it expects to utilize available cash and borrowings under its revolving loan and credit agreement to fund the transaction, which it expects to close in April 2015 subject to customary closing conditions. Fred’s noted that it anticipates that the deal will be accretive to earnings in the first full year following closing.
“We are excited to announce the acquisition of EntrustRx, which will further expand our presence in the specialty pharmacy arena, the largest growth area of the pharmacy industry,” said Fred’s CEO Jerry Shore. “It offers a strong strategic fit to our current specialty pharmacy operations. We welcome the skilled and valued EntrustRx and Reeves-Sain Drug Store employees to the Fred’s team and know that they will make great contributions to the future of our pharmacy operations.”