US-based drugstore chain Rite Aid has released an update on its plans to sell its stores to Walgreens Boots Alliance (WBA), following the previously disclosed Amended and Restated Asset Purchase Agreement that was released last September.
Rite Aid is currently said to have transferred 625 stores and related assets to WBA, as well as received cash proceeds of $1.3bn, which will be used by the company to repay its outstanding secured loans totalling $970m.
As part of the asset purchase agreement, WBA has agreed to acquire 1,932 stores, three distribution centres and related inventory from Rite Aid for a $4.3bn cash consideration.
Rite Aid chairman and CEO John Standley said: “Our teams continue to make tremendous progress in transferring stores to WBA and I want to thank them for their ongoing commitment and dedication. We are on track to complete the transfer of stores in the spring of this year.
“Going forward, we remain focused on the continued smooth execution of that process and capitalising on our most significant business-building opportunities as we work together to deliver a great experience to our customers and patients, and drive value for our shareholders.”
According to the company, the majority of the closing conditions have been fulfilled, and the subsequent transfers of its stores and related assets remain subject to minimal customary closing conditions.