M&A

13 January, 2010

Walgreens Agrees to Acquire Pharmacy Business and Certain Other Assets from Snyder Drug in Minnesota

Press Release Source: Walgreens On Wednesday January 13, 2010, 9:00 am EST

DEERFIELD, Ill.--(BUSINESS WIRE)--Walgreen Co. (NYSE: WAG - News)(NASDAQ: WAG - News) today announced that it has agreed to acquire the pharmacy business and certain other assets of 25 company-owned Snyder's Drug Stores in Minnesota.

Walgreens will acquire and continue to operate certain locations and anticipates staffing most of these store positions with Snyder's employees. At other locations, Walgreens will purchase the prescription files and transfer them to nearby Walgreens pharmacies. Patients whose prescriptions are being transferred will be notified by letter once the transaction has been completed later this month.

After the transaction is completed, Snyder's expects to cease operations of its company-owned stores.

"We appreciate our customers' many years of loyalty and patronage," said Snyder's President Neal Wahlman. "We determined that Snyder's patients and customers could best be served by a large national player like Walgreens. In most cases, Walgreens had nearby pharmacies which will facilitate a smooth transition."

"Walgreens trusted pharmacy service goes back 109 years, including more than 80 years in Minnesota," said Walgreens Minnesota market vice president Jeff Bruneteau. "Our pharmacy staffs will be ready to make the transition as seamless as possible for Snyder's patients. We look forward to continuing Snyder's tradition of quality pharmacy service in communities around Minnesota."

The acquisition is subject to certain customary terms and conditions. Financial terms of the transaction were not disclosed.

Walgreens (www.walgreens.com) is the nation's largest drugstore chain with fiscal 2009 sales of $63 billion. The company operates 7,149 drugstores in all 50 states, the District of Columbia and Puerto Rico. Walgreens provides the most convenient access to consumer goods and services and cost-effective pharmacy, health and wellness services in America through its retail drugstores, Walgreens Health Services division and Walgreens Health and Wellness division. Walgreens Health Services assists pharmacy patients and prescription drug and medical plans through Walgreens Health Initiatives Inc. (a pharmacy benefit manager), Walgreens Mail Service Inc., Walgreens Home Care Inc., Walgreens Specialty Pharmacy LLC and SeniorMed LLC (a pharmacy provider to long-term care facilities). Walgreens Health and Wellness division includes Take Care Health Systems, the largest and most comprehensive manager of worksite health and wellness centers and in-store clinics, with more than 700 locations throughout the country.