How much is Walgreen paying for drugstore chain Duane Reade?”
DEERFIELD, Ill. (AP) — Walgreen (WAG) said Wednesday that it has agreed to buy drugstore operator Duane Reade in a move to expand in the New York City metropolitan area. Walgreen, one of the nation’s biggest drugstore operators, said it will pay about $1.08 billion including an undisclosed amount of debt for Duane Reed Holdings. READ: What Walgreen says Duane Reed, which has been operating in the New York area for 50 years, is owned by a group that includes affiliates of the buyout firm Oak Hill Capital Partners. The deal, which requires regulatory approval, would include all 257 Duane Reade stores in the New York City metro area, along with the corporate office and two distribution centers. Walgreen, based in Deerfield, Ill., operates 70 stores in the New York area and had 7,162 stores nationwide as of Jan. 31. The company will pay for the buyout with existing cash and expects the deal to close by Aug. 31. Walgreen expects the deal to cut into earnings per share the next 12 months, bu
February 17, 2010, 7:49 am Walgreen to Buy Duane Reade for $1.1 Billion Update | 11:41 a.m. Walgreen, the national pharmacy chain, said on Wednesday that it had agreed to buy Duane Reade Holdings, whose drugstores occupy many a New York City corner, for about $1.1 billion in cash. Walgreen is buying the 257-store chain, which is burdened by a big debt load, from the private equity firm Oak Hill Capital Partners. The deal will be financed by Walgreen’s cash on hand and includes the assumption of debt. “Duane Reade is a compelling strategic acquisition that will immediately provide Walgreens with a leading position in the largest drugstore market in the U.S.,” Gregory D. Wasson, Walgreen’s chief executive, said in a statement. Duane Reade, founded in 1960 and named after the two streets in Lower Manhattan where the first store was built, generated about $1.8 billion in sales in 2009, according to Walgreen. Last year, Oak Hill invested an additional $125 million into Duane Reade to keep t
Walgreen Co., the biggest U.S. drugstore chain, agreed to buy Duane Reade Holdings Inc. from affiliates of Oak Hill Capital Partners for $1.08 billion, including debt, to expand in metropolitan New York. The cash transaction will dilute profit in the first year after closing and add to earnings the following 12 months and thereafter, Deerfield, Illinois-based Walgreen said today in a statement. The purchase gives Walgreen a chain with the highest sales per square foot in the U.S. drugstore business. Duane Reade opened its first store on Broadway between Duane and Reade streets in 1960, and about 60 percent of its stores are in Manhattan. The chain, which had $1.8 billion in revenue in the 12 months ended Dec. 26, has 257 drugstores in the New York City area, where Walgreen operates 70.
