Walgreens Buys Rite Aid

Walgreens has announced that it will purchase competitor Rite Aid for roughly $9.4 billion, including debt.

That means that people who owned Rite Aid stock, which Walgreens purchased for $9 dollars, earned 48 percent more than the stock was worth on the market, according to The New York Times. 

Once the deal is finalized, Rite Aid will operate as a subsidiary of Walgreens and the Rite Aid brand will not be retired.

Walgreens has embarked on a buying spree in the United States and abroad since 2010. In the interim, the company has purchased Duane Reade, USA Drugs, and Kerr Drug. Walgreens had a revenue of $76 billion in 2014 and more than 8,200 stores. The Rite Aid purchase means that Walgreens' store count will grow by 4,600 in 31 states.

In 2014, Walgreens made its first foray into the European market with the purchase of Britain's Alliance Boots pharmacy chain.

Walgreens' acquisitions fall into the trend of pharmacy consolidation, as the United States' largest pharmacy chain, CVS, has also made a number of purchases of smaller rivals. These acquisitions include Long's Drug, Medicine Chest and Navarro Discount Pharmacy. CVS has more than 7,800 stores nationwide.