Walgreens Continues to Believe Rite Aid Acquisition Will Close; Plans to Divest Incremental Stores

Executive Summary

• Walgreens expects to divest more than 500, but less than 1,000 stores in order to address antitrust concerns raised in conversations with the Federal Trade Commission (FTC) regarding the Ride Aid acquisition.
• Walgreens continues to believe the deal will close in the second half of 2016. Conversations with the FTC appear to be ongoing.
• Management expects the acquisition of Ride Aid will add to company’s adjusted earnings per share in the first full year after the transaction closes. Synergies will be more than $1 billion primarily from operational activities such as procurement and cost savings.