Walgreens Acquires Duane Reade

The national pharmacy chain Walgreens has agreed to purchase its debt-burdened rival Duane Reade for $1.1 billion in cash.

According to the deal, Duane Reade will retain its store names as well as most of its senior management team.  

“Duane Reade is a compelling strategic acquisition that will immediately provide Walgreens with a leading position in the largest drugstore market in the US,” stated Walgreens president and CEO, Gregory Wasson.

Founded in 1960 and operating 257 stores in Manhattan, Duane Reade generated roughly $1.8 billion in sales last year, Walgreens said. Last year, Oak Hill Capital Partners invested $125 million into the fledgling chain to keep it from defaulting. The firm then sought to refresh Duane Reade’s image with a new logo and to revamp its in-store design with more light and aisle space.