Walgreen closes on Kerr Drug transaction

Walgreen closes on deal for Kerr Drug's retail drugstores, specialty pharmacy business

Associated Press

DEERFIELD, Ill. (AP) -- Walgreen has closed on its acquisition of Kerr Drug's 76 retail drugstores and its specialty pharmacy business.

Walgreen Co. announced the deal in September. The transaction also includes a distribution center, but does not include the long-term care pharmacy business of Kerr, a privately held regional chain.

Financial terms were not disclosed.

The buyout will help Walgreen, the nation's biggest drugstore chain, expand its North Carolina presence.

Walgreen has been on an acquisition-fueled growth spurt.

Last year, the Deerfield, Ill. company said it would buy a stake in European health and beauty retailer Alliance Boots, the largest drugstore chain in the United Kingdom, in a cash-and-stock deal valued at $6.7 billion. Walgreen also has an option to buy the rest of the company in a few years.

Walgreen also spent $438 million to buy a regional chain that runs USA Drug, Super D and May's drugstores. It said that deal would help it expand to smaller communities.

In March, the drugstore chain announced a 10-year supply agreement with pharmaceutical wholesaler AmerisourceBergen Corp. In that deal, Walgreen and Alliance Boots received the right to buy up to 7 percent of AmerisourceBergen's shares and warrants to purchase an additional 16 percent.

Shares of Walgreen added 36 cents to $59.56 in Friday morning trading.

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