Rite Aid completes acquisition of Thrifty for $2.44 billion Deal gives firm largest drug chain on West Coast

December 13, 1996|By BLOOMBERG BUSINESS NEWS

CAMP HILL, Pa. -- Rite Aid Corp. said yesterday that it completed its acquisition of Thrifty Payless Holdings Inc. for about $2.44 billion in stock and debt, giving Rite Aid the biggest drugstore chain on the West Coast.

Rite Aid, the nation's largest drugstore chain, will pay $1.55 billion in stock and take on $890 million in Thrifty debt as it makes a comeback from April's scuttled $1.8 billion bid for No. 2 Revco D.S. Inc.

The purchase would add the West Coast to Rite Aid's strongholds in the Midwest and East. That could help it pick up more business from managed health care companies, which prefer to work with a region's dominant chains.

In separate meetings yesterday, shareholders of both companies approved the acquisition, which was announced in October. More than 81 percent of Rite Aid shareholders approved the acquisition and 77 percent of Thrifty Payless' holders agreed.

Rite Aid will convert each Thrifty Payless share into 0.65 of a share, issuing about 38.7 million shares in the transaction. The shares are valued at $1.52 billion, based on Rite Aid's closing price yesterday of $39.375.

The acquisition of Wilsonville, Ore.-based Thrifty Payless will create a chain of more than 3,500 drugstores with annual revenue of more than $10 billion, compared with Rite Aid's 2,788 stores and annual revenue of $5.9 billion before the transaction.

Pub Date: 12/13/96

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