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California  + Retail  | 

Rite Aid’s $950M, 865 Store Sale

Camp Hill, PA-based Rite Aid plans to sell 865 stores to Memphis, TN-based Fred’s Inc. for $950 million, in an effort to assuage antitrust concerns surrounding its proposed merger with Deerfield, IL-based Walgreens Boots Alliance Inc. The sale would make Fred’s one of the biggest pharmacy chains in the U.S.

Walgreens is the world’s largest retail pharmacy chain, and has 13,200 stores globally, including more than 630 in California. Rite Aid has 4,570 stores in the U.S. and roughly 630 in California. Once regulators approve the sale, the proposed $9.4-billion merger is expected to close at the start of next year.

BofA Merrill Lynch and Regions Bank will provide financing to Fred’s for the acquisitions. A.T. Kearney advised Fred’s. BofA Merrill Lynch served as financial adviser for Walgreens Boots Alliance, and Citi advised Rite Aid.

Walgreens expects the merger to generate more than $1 billion in savings and other efficiencies in the first three to four years.

Read more at Rite Aid

For comments, questions or concerns, please contact Dennis Kaiser

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About Dennis Kaiser

Dennis Kaiser is Vice President of Public Relations and Communications for Connect Creative. Dennis is a communications leader with more than 40 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect Creative’s agency client services and is involved in a range of initiatives ranging from public relations and content strategy, communications and message development, copywriting, media relations, social media and content marketing services. Prior to joining Connect Media in 2015, his most recent corporate communications roles involved leading a regional public relations effort across Southern California for CBRE, playing a key marketing role on JLL’s national retail team, and directing the global public relations effort at ValleyCrest (BrightView), the nation’s largest commercial landscape services company. He has worked on marketing communications assignments for such CRE companies as Blackstone/Equity Office, Carlyle, Caruso, Disney Resorts, GE Capital, Irvine Company, Hines, Howard Hughes Corp., Jeffries, Lennar, MGM, Marcus & Millichap, Prologis, Raleigh Studios, Simon, Starwood, Trammell Crow Company, Transamerica, UBS and Wynn Resorts. Dennis has also worked on communications and launch strategies for a number of consumer electronic, media and tech brands including SlingMedia, Channel Master, Deluxe Media Entertainment, BeIn Sports, EchoStar and Sprint. Dennis’s agency background included firms such as Off Madison Ave., Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, Boy Scouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and the Thunderbirds Charities.

  • ◦Sale/Acquisition
  • ◦Sale/Acquisition
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