Albertsons has announced plans to merge with Rite Aid.
The grocery store and drug store chains announced the deal Feb. 21.
The integrated company will operate about 4,900 locations, 4,350 pharmacy counters and 320 clinics across 38 states and Washington, D.C., serving more than 40 million customers per week. Most Albertsons pharmacies will be rebranded as Rite Aid, and the company will continue to operate Rite Aid stand-alone pharmacies.
Rite Aid has seven stores in the Tri-Cities, plus one in Hermiston and one in Sunnyside.
Albertsons operates two Kennewick stores and a Pasco store, plus two Safeway stores, one in Richland and the other in Kennewick.
Albertsons operates stores across 35 states and the District of Columbia under 20 well-known banners including Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen and Carrs, as well as meal kit company Plated, based in New York City.
“The hallmark of Albertsons Companies’ business has been to become the favorite local supermarket of our customers,” said Bob Miller, Albertsons Companies Chairman and CEO, in a statement. “We have always put our customers first, and our combination with Rite Aid will enable us to even better serve the valuable pharmacy customer by providing a fully integrated one-stop-shop for our customers’ food, health, and wellness needs. I have long known the excellent management team at Rite Aid, and we share a singular focus on superior customer service and a clear vision and strategy to become the favorite local supermarket and pharmacy to shoppers in every neighborhood we serve.”
Albertsons is backed by an investment consortium led by Cerberus Capital Management.
“This powerful combination enables us to become a truly differentiated leader in delivering value, choice, and flexibility to meet customers’ evolving food, health, and wellness needs,” said Rite Aid Chairman and Chief Executive Officer John Standley in a release. “The combined platform positions Rite Aid to capitalize on our pharmacy expertise and expand and enhance our pharmacy footprint. We are confident that delivering improved customer experiences and value will drive growth and profitability while creating compelling long-term value for shareholders.”
The combined company is expected to generate revenues of about $83 billion and about $3.7 billion in estimated annual earnings before interest, taxes, depreciation and amortization.
Rite Aid Corp. reported fiscal 2017 annual revenues of $32.8 billion.