UFCW 324 Communications / News
Rite Aid Completes Eckerd/Brooks Deal
June 5, 2007 · Wire Services
Rite Aid Corp. finalized its purchase of 1,854 Eckerd and Brooks drug stores on Monday along with six distribution centers from Jean Coutu Group, Longueuil, Quebec. The $3.4 billion transaction was announced in August.
The stores and distribution centers are located in 18 states, primarily on the East Coast and in the Mid-Atlantic region. Rite Aid said it would convert all stores to the Rite Aid banner over the next 16 months, beginning with a pilot group of 23 Brooks and Eckerd stores representing various store layouts. Rite Aid said it has found buyers for all 23 stores it was required to divest as a result of a federal antitrust review.
Mary Sammons, Rite Aid’s president and chief executive officer, has also been appointed chairman of the board, succeeding Robert G. Miller who remains a director. Michel Coutu, president of Coutu’s U.S. operations, was named non-executive director of Rite Aid. Under terms of the cash-and-stock deal, Coutu Group retains a 32% equity stake in Rite Aid.