ATTENTION UFCW 8-GOLDEN STATE MEMBERS WORKING AT ALBERTSONS AND RITE AID:
The Albertsons and Rite Aid merger deal remains subject to approval by regulators and Rite Aid shareholders. We are communicating with Albertsons and Rite Aid to see what impact, if any, this merger will have on our Albertsons and Rite Aid members.
As noted in the article below, "… the company will continue to operate Rite Aid’s stand-alone stores." The merger could be completed as early as the second half of 2018.
We will keep members informed as additional details become available. Please contact your District Union Representative with any questions.
CNBC Article: Grocery chain Albertsons to acquire Rite Aid -- FEBRUARY 20, 2018 -- This deal follows Rite Aid’s failed attempt in 2015 to sell to its 4,600 stores to Walgreens. That deal was whittled down by regulators to a purchase of 1,932 stores for $4.37 billion.
Rite Aid has a market value of $2.31 billion. The combined company is expected to have roughly $14 billion in net debt, according to credit ratings firm Moody’s. That figure could vary depending on how shareholders choose to be compensated for the deal.
As part of the deal, Rite Aid shareholders will have the right to exchange 10 shares of Rite Aid common stock for one share of Albertsons common stock plus roughly $1.83 in cash or 1.079 shares of Albertsons stock. Depending on the shareholders’ elections, Rite Aid will own a 28 percent to 29.6 percent stake in the combined company and current Albertsons shareholders will own 70.4 percent to 72 percent, on a fully diluted basis.
The new company’s revenues would be about $83 billion.
The two will have about 4,900 locations, 4,350 pharmacy counters and 320 clinics across 38 states and the District of Columbia. Most Albertsons’ pharmacies will be rebranded as Rite Aid, and the company will continue to operate Rite Aid’s stand-alone stores.
Upon deal approval, Rite Aid Chairman and CEO John Standley will become CEO of the combined company, and Albertsons chairman and CEO Bob Miller will be chairman of the new company.
Read more: www.cnbc.com