Walgreens to close 600 stores, spend $750M to rebrand Rite Aids

Walgreens plans to close about 600 stores over an 18-month period beginning next year, according to the Chicago Sun-Times.

The Deerfield, Ill.-based company made the announcement in the wake of its purchase of the Rite Aid drugstore chain. Under an agreement that received regulatory approval in September, Walgreens is buying 1,932 Rite Aid stores, three distribution centers and inventory for $4.38 billion.  

The deal replaced the companies' earlier $6.8 billion purchase agreement, which Walgreens walked away from in June. On an earnings call Wednesday, Walgreens said termination fees and costs related to its pursuit of Rite Aid caused earnings to fall to $802 million in the fourth quarter of fiscal year 2017, down from $1.03 billion in the same period the year prior, according to the report.

Walgreens plans to close stores, mostly Rite Aids, that are within 1 mile of another Rite Aid or Walgreens. Walgreens will spend $750 million over the next three years to rebrand the remaining Rite Aid stores, according to Forbes.

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