Fred's Issues Statement On Termination Of Walgreens-Rite Aid Deal - Quick Facts

(RTTNews) - Fred's, Inc. (FRED) announced the termination of asset purchase agreement with Walgreens and Rite Aid has no impact on Fred's Pharmacy's transformation. Fred's Pharmacy will receive $25 million as reimbursement for expenses associated with the terminated transaction.

On December 20, 2016, Fred's Pharmacy announced that it signed an asset purchase agreement with Walgreens and Rite Aid to purchase 865 stores and certain other assets. Following the termination of the merger between Walgreens and Rite Aid, the Fred's Pharmacy asset purchase agreement with Walgreens and Rite Aid has also been terminated.

Michael Bloom, CEO, said, "While the acquisition of additional stores was an opportunity for growth, we always viewed it as a potential outcome that would accelerate our transformation, not define it. This is a disappointing outcome; however, the termination of the transaction has no impact on the Company's transformation strategy or our ability to execute."