One of the most powerful acquisitions will take place next month. Albertsons is currently working on a multi-billion dollar deal with Rite Aid to become a leader in the food, health, and wellness sector. With $5,000 of Joe Albertson’s own money and a $7,500 loan from his wife’s aunt, Albertsons opened their first store with new services that customers hadn’t seen in a grocery store before. On the other hand, Rite Aid has first opened its doors in 1962 and has since grown its business to 4,600 stores.
Albertsons recently announced that they have reached an agreement to acquire Rite Aid as part of a $24 billion deal that will make the privately-held grocery store public. The current CEO of Rite Aid will become CEO of the combined company while the current CEO of Albertson’s will become the chairman. The combined company will operate approximately 4,900 locations, 4,350 pharmacies, and 320 clinics across 38 states. Most Albertson’s pharmacies will be rebranded as Rite Aid and the company will continue to operate Rite Aid standalone pharmacies.
Both Albertsons and Rite Aid will be improving their growth by deepening existing relationships and expanding reach across higher-value pharmacy customers. The Albertsons and Rite Aid merger is expected to be traded on the New York Stock Exchange following the completed deal. It will establish the leading integrated food, health, and wellness retailer on the West Coast and will have a strong brand position in the Northeast. The combined company is expected to be comprised of leadership from both companies and will be dual-headquartered in Boise, Idaho, and Camp Hill, Pa. The companies said the name of the combined company will be determined once the agreement is complete.