Genovese Drug
This article was originally published in The Tan Sheet
Executive Summary
Will be acquired by J.C. Penney Company for $432 mil. in equity and a $60 mil. assumption of debt, the companies announce Nov. 24. The New York City metropolitan area pharmacy chain of 141 stores will become part of Penney's Eckerd drug store operation, expanding the chain to 2,900 stores in 20 states across the Northeast, Midwest and Sunbelt. The acquisition of Melville, N.Y.-based Genovese "will add the key New York City and Nassau/Suffolk County markets" to Eckerd's business, Penney says. Fiscal 1999 sales for the combined operation are expected to total more than $12 bil. Penney acquired Eckerd in 1997. The Genovese transaction is expected to be "mildly dilutive" in 1999, Penney adds, but "modestly accretive" in 2000, its first full year of integration