Walgreen Co. on Wednesday said it will acquire Duane Reade Holdings Inc. from affiliates of Oak Hill Capital partners in a cash transaction valued at $1.1 billion.
The deal includes the assumption of debt, and is subject to customary conditions including the receiving the requisite regulatory approvals. Walgreen said it will fund the acquisition via existing cash and expects the transaction to close within its current fiscal year, which ends on Aug. 31.
Duane Reade operates 257 sites within in the New York City metropolitan area, as well as a corporate office and two distribution centers.
For the year ended Dec. 26, the New York-based drugstore chain posted unaudited net sales of $1.8 billion.
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Walgreen, based in Deerfield, Ill., operates about 7,100 stores, about 70 in the New York metropolitan area. The company said it expects to retain Duane Reade’s store, pharmacy and distribution center employees, as well as members of its senior management team following the acquisition.
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