Supermarket Giant Albertsons Will Acquire Rite Aid

Walgreens Boots Alliance is acquiring almost 2,000 Right Aid stores but that isn’t nearly how many there are. So what will happen to the rest?

Supermarket giant Albertson’s, which is private, has decided to acquire the rest of the stores and will go public.

The announcement was made on Tuesday where Albertson’s said it would buy the remaining Rite Aid stores in a cash and stock deal.

Combining the two companies would leave a company valued at around $24 billion, including the debt.

The deal is expected to close in the second half of this year and though there is no name yet for the merged company, it will be trading on the New York Stock Exchange.

As per the deal, Rite Aid shareholders will be able to exchange 10 shares of Rite Aid common stock for one share of Albertson’s common stock plus roughly $1.83 in cash or 1.079 shares of Albertson’s stock.

Albertson’s pharmacies will be renamed to Rite Aid and once the deal is approved, Rite Aid Chairman and CEO John Standley will be the new CEO of the combined company. Albertson’s chairman and CEO Bob Miller will be the chairman of the newly formed company.

Disclaimer: We have no position in Rite Aid Corporation (NYSE: RAD) and have not been compensated for this article.