Albertsons’ Deal To Purchase Rite Aid Is Latest Twist To Remake Retail And Health Care Industries
The chief executives of the companies say that the merger is the best way for them to compete in businesses increasingly threatened by online companies like Amazon and Walmart.
The New York Times:
Albertsons Is Buying Rite Aid. Walmart’s Stock Falls. There’s A Common Rival.
The supermarket operator Albertsons said Tuesday morning that it would buy the remnants of the Rite Aid drugstore chain. By the end of the day, Walmart saw its stock drop by more than 10 percent on weak profit. Both can blame Amazon. (Corkery and Bray, 2/20)
Albertsons, Rite Aid Deal Creates U.S. Supermarket And Healthcare Giant
Supermarket giant Albertsons is buying part of Rite Aid, the nation's third-largest pharmacy chain, as the companies try to navigate sweeping shifts in the food and health care industries. Rite Aid (RAD) and Albertsons, the private-equity backed company that operates Safeway and several other grocery chains, said the deal would create a company with expected 2018 revenue of $83 billion and potential annual earnings of $3.7 billion before interest, taxes, depreciation and amortization. The deal is aimed at sparking Rite Aid's expansion as the company competes with retailing giant Amazon, which is eyeing a potential entry into health care, as well as Walmart. (McCoy, 2/20)
The Wall Street Journal:
Albertsons Scoops Up Remainder Of Rite Aid As Retailers Face Online Threat
The drugstore chain and Albertsons have a combined value of around $24 billion, including debt, the companies said Monday. Rite Aid, which comprises thousands of drugstores and a benefits-management company with millions of members, has a market value of about $2.3 billion and is in the process of selling a chunk of its stores to Walgreens. (Haddon, 2/20)
Albertsons To Buy Rite Aid In Latest Amazon Countermeasure
Retailers have been under growing pressure from online competitors like Amazon.com Inc., and the corner drugstore has been no exception. While the prescription drug businesses at pharmacies has been relatively stable, front-of-the-store sales have been in decline. Giant retailers like Walmart Inc. are also looking to play a bigger role. (Levingston, 2/20)