Fred’s Inc. to Acquire 865 Stores From Rite Aid and Walgreens

January 3, 2017

Cleary Gottlieb is representing Peter J. Solomon Company as financial advisor to Fred’s, Inc. in its pending acquisition from Walgreens Boots Alliance, Inc. and Rite Aid Corporation of 865 stores and certain assets related to store operations located across the eastern and western United States for $950 million in cash.

The transaction, announced on December 20, 2016, is subject to the completion of Walgreens Boots Alliance’s proposed acquisition of Rite Aid and approval by the Federal Trade Commission, as well as customary regulatory approvals and closing conditions. The transaction, if approved, will position Fred’s as the third-largest drugstore chain in the U.S.

Fred’s and its subsidiaries operate 647 discount general merchandise stores and three specialty pharmacy-only locations in 15 states in the southeastern U.S.