Walgreen Co. is buying Duane Reade Holdings Inc., operator of a chain of 257 drugstores in the New York area, for about $1.08 billion including assumption of $457 million in debt, the company said Wednesday.
Pharmacy Chain, Walgreen Co. is purchasing Duane Reade Holdings Inc., for roughly $1.08 billion in addition to the assumption of $457 in corporate debt according to the company. The acquisition of Duane Reade, which operates over 257 locations will be funded with cash and is expected to close by August 31.
In the initial year following the deal, Walgreens anticipates that earnings per share will be weak before annual savings of as much as $130 million annually can be met.
In 2009, Duane Reade earned $1.8 billion in sales inspiring Walgreens to maintain the name of the nearly 50-year-old chain.
The purchase of Duane Reed follows through on objectives set by the company last fall when they began looking for potential investments and opportunities consistent with the company’s strategy.
Shares of Walgreen made minor gains to reach $34.21 at midday.
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