Rite Aid merger with Thrifty Payless would create bicoastal chain of 3,500 stores.
This article was originally published in The Tan Sheet
Executive Summary
RITE AID PROPOSED ACQUISITION OF THRIFTY PAYLESS suggests shift from regional depth-based growth strategy to geographic breadth. After abandoning an attempt to acquire Revco and enhance its position as the leading drugstore chain in the eastern U.S., Rite Aid is attempting to establish a bicoastal presence with the acquisition of the western U.S. drug store chain Thrifty PayLess. The merger agreement calls for Rite Aid to issue $1.3 bil. in stock to Thrifty PayLess shareholders and assume the firm's $890 mil. in debt.