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Walgreens and Fred’s, Inc. yesterday announced they have entered into an agreement that will have Walgreens acquiring pharmacy patient prescription files and related pharmacy inventory of 185 Fred’s stores located across 10 Southeastern states. The deal is worth $165 million, though that number will be adjusted based on an inventory audit.

The agreement allows Fred’s to eliminate its debt balance, while giving Walgreens an expanded footprint in the southeastern US.

The companies said that “once the transaction is complete, Fred’s will continue to operate approximately 162 pharmacies across nearly 600 stores.”

Scott Moses at PJ Solomon acted as financial advisor to Fred’s when making the deal.
KC's View:
I’m sure, in an ideal world, this wouldn’t have been the path Fred’s would’ve chosen. But I give them a lot of credit for doing what needed to be done in order to have a chance at being more competitive and a sustained chance at success.