Tuesday, June 17, 2008

Rite Aid deal a bitter pill for Jean Coutu in first year after sale

From the Providence (RI) Journal:
The family that controlled the Warwick-based Brooks drugstore chain has seen the value of its stock holdings melt away in the year since it sold the company to a rival pharmacy operator.

Canada’s Jean Coutu Group (PJC.A:TSX) last year sold more than 1,850 Brooks and Eckerd drugstores and 6 distribution centers to Rite Aid Corp. for $3.9 billion in cash and stock in a deal that closed June 4, 2007.

Under the deal, Rite Aid paid $2.3 billion in cash to Jean Coutu and issued the company headquartered in Longueuil, Quebec, about 252 million shares, according to filings made last year to the U.S. Securities and Exchange Commission. The acquisition made Jean Coutu Group the largest Rite Aid shareholder, with 32 percent of common stock and about 30 percent of voting power. Jean Coutu’s holding in the third-largest American drugstore chain remains unchanged. ...more

No comments: