Walgreens furthers reach into North Carolina with acquisition of Kerr Drug
DEERFIELD, Ill. — Walgreens on Tuesday announced its acquisition of Kerr Drug, a privately-held regional pharmacy chain in North Carolina, to include both Kerr's retail drug stores and specialty pharmacy business.
In fiscal year 2012, Kerr Drug’s retail drug stores and specialty pharmacy business recorded total sales of $381 million.
“The Kerr Drug retail drug stores and specialty pharmacy business are an exceptional addition to the Walgreens family of companies,” stated Walgreens president and CEO Greg Wasson. “We are closely aligned on the important task of expanding the healthcare role that community pharmacists can have with their patients, and we share the common goal of stepping out of the traditional drugstore format to create a new experience for our customers.”
“Kerr Drug’s strategy and core principles have always been focused on its unique ability to provide patients access to the most comprehensive and convenient health and wellness offering in the industry," noted Anthony Civello, Kerr Drug chairman, president and CEO. "Walgreens is the perfect partner to continue this journey as a patient-oriented company dedicated to expanding the role of the pharmacist as an integral part of health care.”
Financial terms of the agreement were not disclosed.
Earlier this year Walgreens and Kerr Drug were named the top pharmacy chains, for a national chain and regional chain respectively, by OutcomesMTM, a medication therapy management delivery system
The acquisition is structured as an asset transaction and includes Kerr Drug’s 76 retail drug stores and its specialty pharmacy business. The acquisition also includes a distribution center. Kerr Drug will retain ownership of its long-term care pharmacy business.
Walgreens has 200 stores in the North Carolina market. "We anticipate that a significant majority of Kerr Drug stores will remain open," Walgreens spokesman Michael Polzin told DSN. "As with most acquisitions, there will be overlap in some locations, which may result in store closures. I’d anticipate that those decisions will be communicated shortly after the transaction is finalized," he said.
The transaction is subject to satisfaction of regulatory requirements and other conditions, and is expected to close sometime this year. Walgreens anticipates the transaction will not have a material impact on earnings per share in fiscal year 2014.
Until the acquisition closes, Kerr Drug and Walgreens will continue to operate separately. After closing, the acquired Kerr Drug retail drug stores will continue to operate under their current brand in the near term.