Believing Kerr Drug will be a good fit with its own pharmacy chain, Walgreen President and CEO Greg Wasson said, "We are closely aligned on the important task of expanding the health care 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 recorded total sales of $381 million in fiscal 2012 across its 76 retail drugstores. The deal also includes a distribution center, but Kerr Drug will retain ownership of its long-term-care pharmacy business.
Walgreen has acquired several drugstore chains over the past chain, including the U.K.'s largest drugstore chain Alliance Boots and a chain that operated the USA Drug, Super D Drug, May's Drug, Med-X, and Drug Warehouse brands.
Pointing to Walgreen's patient-orient philosophy, Kerr Drug Chairman, President, and CEO Anthony Civello said, "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."
While subject to regulatory requirements and other conditions, the transaction is expected to close sometime this year and is not anticipated to have a material impact onWalgreen's earnings per share in fiscal year 2014.
Until the acquisition closes, though, the two companies will continue to operate separately, but once it does close, Kerr Drug's retail drugstores will continue to operate under their current brand in the near term. Financial terms of the transaction were not disclosed.