Walgreen Company to Acquire North Carolina-Based Kerr Drug (WAG)
Early on Tuesday, drug store retailer Walgreen Company (WAG) and Kerr Drug, a privately held regional pharmacy chain in North Carolina, announced that they have reached an agreement under which Walgreen would acquire certain assets of Kerr Drug’s business.
The companies noted that the acquisition is structured as an asset transaction and includes Kerr Drug’s 76 retail drugstores and its specialty pharmacy business. Financial terms of the agreement were not disclosed.
Until the transaction closes, Walgreens and Kerr Drug will continue to operate separately. Even after closing, Kerr Drug will continue to operate its brand name in the near-term. Long-term decision regarding the most effective way to integrate Kerr Drug’s drugstores with Walgreens’ operations still need to be made.
Walgreen shares were up a fraction during early morning trading on Tuesday. The stock is up 36.1% year-to-date.
The Bottom Line
Shares of Walgreens (WAG) offer a dividend yield of 2.50% based on Tuesday’s intraday trading price of $50.33 and the company’s annualized dividend payout of $1.26.
Walgreen Company (WAG) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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