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Rite Aid Completes Store Transfer To Walgreens

Rite Aid said it has completed the store transfer process under the previously announced deal to sell some of its assets to Walgreens Boots Alliance.

All 1,932 stores and related assets have been transferred to Walgreens in exchange for cash proceeds of $4.157 billion. The transfer of the three distribution centers and related inventory is expected to begin after September 1, 2018.

The majority of the closing conditions have been satisfied, and the transfers of Rite Aid distribution centers and related assets remain subject to minimal customary closing conditions applicable only to the distribution centers as specified in the asset purchase agreement, the company noted.

Rite Aid’s board of directors also terminated a tax benefits preservation plan that it adopted on January 3. As a result of the plan, Rite Aid protected approximately $2.2 billion of its net operating losses. The plan was originally scheduled to expire on January 3, 2019.