Boom! Walgreens Buys Online Retailer Drugstore.com For $409 Million
Walgreens, which operates 7,689 drugstores across the United States, had fiscal 2010 sales of $67 billion. Walgreens will fund the acquisition with existing cash and anticipates the transaction to close by the end of June 2011.
Drugstore.com registered more than $456 million in sales in 2010. Walgreens says it will maintain drugstore.com’s corporate office in Bellevue, Washington, after the merger is completed. Drugstore.com employs approximately 1,000 people.
Under the terms of the agreement, Drugstore.com stockholders will receive $3.8 in cash for each share of stock, which represents an equity value of approximately $429 million. The purchase price per share is a premium of roughly 102 percent over drugstore.com’s 30-day average closing stock price, and a premium of approximately 113 percent over yesterday’s closing price of Drugstore.com’s common stock.
Walgreens President and CEO Greg Wasson, commented:
“This acquisition offers a unique opportunity that will provide us immediate access to more than 3 million savvy, online loyal customers, and will allow us to move even closer to our existing customers through relationships with new vendors and partners, adding approximately 60,000 products to our already strong online offering.
Importantly, drugstore.com’s well-recognized presence in the health, personal care, beauty and vision categories, including such strong websites as drugstore.com, Beauty.com, SkinStore.com and VisionDirect.com, will complement and extend many of our own multi-channel initiatives that have been driving growth in our business.”
Drugstore.com will maintain separate branding of its websites after the merger closes.
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