Albertsons Might Be Buying a Lemon in Rite Aid

A Rite Aid logo is seen outside one of their stores in New York

When Walgreens' proposed acquisition of rival Rite Aid fell through past year because of regulatory resistance, Walgreens agreed to purchase about 2,000 Rite Aid locations, leaving Rite Aid a much smaller company.

Following the merger, which must first be approved by regulators, Albertsons and Rite Aid will have approximately 4,900 locations and 4,350 pharmacy counters, as well as 320 clinics across 38 states and Washington, D.C. They will also serve 40 million customers per week, Albertson's said in a press release.

As at the very top there will be executives from both firms on the management team, which will maintain joint headquarters in Boise, ID and Camp Hill, PA.

Albertsons is one of the largest food and drug retailers in the United States, with stores across 35 states and the District of Columbia under 20 brands, including Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen and Carrs, as well as meal-kit company Plated based in New York City.

National grocery operator Albertsons Companies plans to buy Cumberland County-based Rite Aid.

"This powerful combination enables us to become a truly differentiated leader in delivering value, choice, and flexibility to meet customers' evolving food, health, and wellness needs", Standley said. Bob Miller, CEO of Albertsons, will become the new company's chairman.

The deal would reverse Rite Aid's shrinking footprint.

She said a more personalized service and cost are generally the reason why people come to her pharmacy from others. Late previous year, CVS Health agreed to buy Aetna for $77 billion.

Walgreens attempted to buy the chain a year ago, but the full merger was blocked because of antitrust concerns. In September, the two companies announced a scaled back version for almost 2,000 of Rite Aid's stores. Rite Aid has $11 highest and $1.5 lowest target. The prognosis is mixed, says Jay Jacobowitz, president and founder of Retail Insights. "The company has struggled for better than a decade to consistently grow, and its far-flung and complex components I believe are the major reason for this lack of progress".

The Albertsons Cos. and Rite Aid Corp. have formed an agreement under which the privately held grocer will merge with the publicly traded drug store chain. And, with retail stocks in general being hammered by the disruption of online shopping, it is a buyers' market. We have $1.96 PT which if reached, will make NYSE:RAD worth $85.52 million less. Most Albertsons pharmacies will be rebranded as Rite Aid, and the company will continue to operate Rite Aid standalone pharmacies. "It just won't be very pretty".

Rite Aid, based in Camp Hill, Pa. with sales of $32.8 billion previous year, has struggled with high debt levels and tough competition from CVS and Walgreen, as narrowing drugstore networks have pushed customers away from its stores. Its pharmacy expertise will allow the combined company to drive growth opportunities and efficiencies across its purchasing, marketing, manufacturing and merchandising functions, according to Rite Aid.

Related news:

Hot News

isis-killer-beheading-video-story-top PLAYERUNKNOWN'S BATTLEGROUNDS Announces Ping-Based Matchmaking, Teases New Map
Feb 22, 2018 - 00:50
In a PlayerUnknown's Battlegrounds update, vehicles have been nerfed, and various improvements and bug fixes have been made. This includes the launch of the game's third map, which is now due at some point before the second half of 2018.

isis-killer-beheading-video-story-top Pak claims United States motion to put country on terror financing watchlist differed
Feb 22, 2018 - 00:49
Pakistan has been scrambling to stay off the list compiled by the Financial Action Task Force, which is now meeting in Paris. Nations already on the terror financial watch list include North Korea, Iran, Iraq, Syria, Yemen, Ethiopia, and Sri Lanka.

isis-killer-beheading-video-story-top Kikkan Randall wins gold in women's team sprint
Feb 22, 2018 - 00:47
She is also one of the first women to compete in five Olympics, along with Kelly Clark, who is also in Pyeongchang. Once Diggins realized she won gold, she celebrated and screamed with her teammate, 35-year-old Kikkan Randall .

isis-killer-beheading-video-story-top Porsche 911 GT3 RS comes at €195137 in Germany weights 3152 lbs
Feb 22, 2018 - 00:47
Technical tweaks include a special, ultra-light set of forged alloy wheels - saving 100kg compared to those of the outgoing auto . The 2018 Porsche 911 GT3 RS is here! However, in order to modify brake cooling, the hood is been attached to two vents.

isis-killer-beheading-video-story-top Apple in talks to buy cobalt directly from miners
Feb 22, 2018 - 00:44
A source has told Bloomberg Apple is seeking contracts to buy several thousand metric tons of cobalt over a five-year period. Relying on anonymous sources, Bloomberg reports that Apple is in talks to buy long-term supplies of the metal.

isis-killer-beheading-video-story-top Bears free-agent receiver options decrease as Dolphins tag Jarvis Landry
Feb 22, 2018 - 00:42
A person familiar with the team's plans tells The Associated Press that the Dolphins hope to sign Landry to a multi-year deal. Landry has expressed his desire to remain in Miami and the Dolphins would love to sign him to a cap friendly long-term deal.

isis-killer-beheading-video-story-top Lawyer To Plead Guilty In Latest Move In Mueller Investigation
Feb 21, 2018 - 06:39
Mr Gates was deputy to Paul Manafort , the former campaign manager for Donald Trump in the run-up to the presidential election. Khan, Van der Zwaan's father-in-law, is a billionaire and a part owner of Alfa Group, Russia's largest private banking group.

isis-killer-beheading-video-story-top Supreme Court refuses to hear challenge to California gun law
Feb 21, 2018 - 06:39
Since those two decisions, however, the Court has said very little about the Second Amendment. Florida Governor Rick Scott said during a joint news conference.

isis-killer-beheading-video-story-top Heavy rain causes minor flooding throughout Chicago area
Feb 21, 2018 - 06:38
Jospeh Counties in IN as well as the Tippecanoe River near Ora, affecting Marshall, Fulton and Kosciusko Counties in Indiana. Tobin said right now, our area is at a fine break-over point of whether we're going to actually experience flooding.

isis-killer-beheading-video-story-top Google Pay being rolled out to replace Android Pay and Google Wallet
Feb 20, 2018 - 20:18
Earlier this year, Google announced that it would combine Android Pay and Google Wallet into a single service called Google Pay . As we continue to expand to even more devices and services, the new app offers an exciting glimpse of what's to come.

isis-killer-beheading-video-story-top Trump endorses Romney in run for US Senate seat in Utah
Feb 20, 2018 - 20:15
A member of the Church of Jesus Christ of Latter-day Saints, he also enjoys strong support among Utah's large Mormon population. Romney's designs on the Utah seat were known well before he announced last week .

isis-killer-beheading-video-story-top 'Thought It Was an Explosion.' 4.2-Magnitude Earthquake Rocks Wales
Feb 18, 2018 - 06:04
The British Geological Survey said the epicentre was approximately 20km north-north-east of Swansea and at a depth of 7.4km. One witness, just 4km from the epicentre told EMSC: "Genuinely thought next door had fallen down or the roof had caved in".

isis-killer-beheading-video-story-top National Weather Service issues Winter Weather Advisory for Saturday night
Feb 18, 2018 - 06:01
The low will be about 16 degrees with a 70 percent chance for snow and northwesterly winds up to about 17 miles per hour . West Michigan will take a break from the snow to end the weekend with more sunshine as temperatures continue to increase.

isis-killer-beheading-video-story-top Pochettino apologises to Rochdale, has doubts over Kane
Feb 17, 2018 - 23:12
"We need to assess him tomorrow [Saturday] to see if he's possible for Sunday". "My comment was about first of all the players of Rochdale , our players and the competition".

isis-killer-beheading-video-story-top All you need to know about Canadian PM's week-long State visit
Feb 17, 2018 - 23:10
On 20 February, he will hold meetings with top business leaders and meet representatives of the Indian film industry in Mumbai. Officials in the Canadian Prime Minister's Office have said that no such meeting is planned.