DJ Rite Aid to Buy Bartell Drugs for $95 Million

By Allison Prang

Rite Aid Corp. and Seattle-based Bartell Drugs said Rite Aid has agreed to buy Bartell for $95 million.

Bartell has more than 60 locations in Washington state and brings in more than $550 million in revenue a year, the companies said Wednesday. The drugstore chain--whose stores will keep the Bartell name--fills about 5.5 million prescriptions a year, the companies said.

The companies\' release announcing the deal said it is expected to close by the end of the 2021 fiscal year for Rite Aid. The acquisition is expected to be accretive to adjusted earnings per share for Rite Aid a year after it closes, the release said.

With the Bartell purchase, Rite Aid now expects between $300 million and $325 million in capital expenditures for the 2021 fiscal year. That\'s an increase from its recent guidance of about $275 million.

Rite Aid also said it now expects between $60 million and $135 million in free cash flow. That\'s less than its old guidance of between $110 million and $160 million.

--Write to Allison Prang at allison.prang@wsj.com

(END) Dow Jones Newswires

October 07, 2020 13:50 ET (17:50 GMT)

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