Rite Aid Sells Major U.S. Pharmacy Business to Competitors, Including CVS Health
Rite Aid has transferred the pharmacy activities of over 1,000 of its U.S. outlets to significant rivals such as CVS Health Corporation (NYSE: CVS ), Walgreens, Albertsons, and Kroger, as part of their continuing Chapter 11 bankruptcy proceedings.
CVS Health Corporation (NYSE: CVS), having positioned itself as the top purchaser, secured access to prescription data from more than 600 Rite Aid outlets spanning 15 states. Additionally, they committed to buying 64 actual store sites located in Idaho, Oregon, and Washington. These transactions still require clearance from the bankruptcy court before finalization.
Even with the asset sales, Rite Aid confirmed that their store doors stay open and customers can keep utilizing their pharmacy services seamlessly. According to CEO Matt Schroeder, these deals facilitate a smooth shift for pharmacy clients and aid in retaining certain staff members as well. He stressed that this action guarantees uninterrupted access to essential pharmacy care and services for all customers.
Expanding with additional stores could assist CVS Health Corporation (NYSE:CVS) in broadening its presence in regions where it currently lacks sufficient coverage proportional to the local population when contrasted with other areas across the nation. Such growth presents a valuable strategic chance for the business. Besides reinforcing its position within the retail pharmacy sector, CVS is attracting investors due to its steady dividends. Since 1997, the corporation has upheld regular payouts and presently disburses a quarterly dividend amounting to $0.665 per share. By May 18th, this equated to a dividend yield of 4.25%.
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