DEERFIELD, Ill., Oct. 17 - Walgreen Co. (NYSE, Nasdaq: WAG) today said it will acquire selected assets of Medic drugstores, a 23-store chain in Cleveland and the surrounding area. Walgreens is acquiring the assets from Hilco, a retail restructuring specialist and agent for Medic. Terms of the transaction, which will close Oct. 21, were not disclosed.
Once finalized, Walgreens will convert eight Medic locations to the Walgreens banner. Those stores will remain open while they're converted to Walgreens, beginning the week of Oct. 28. The pharmacies at the other 15 stores will close as of Oct. 22 and have their pharmacy records transferred to nearby existing Walgreens drugstores, which can immediately begin filling these prescriptions. The non-pharmacy portion of those 15 stores will remain open while an inventory liquidation sale is conducted by Hilco.
The following eight Medic locations will continue operating as Walgreens drugstores:
-- 7320 Lakeshore Blvd., Mentor
-- 20145 Van Aken Blvd., Shaker Heights
-- 27251 Wolf Road, Bay Village
-- 4507 Clark Ave., Cleveland
-- 8535 Tanglewood Square, Chagrin Falls
-- 8966 Brecksville Road, Brecksville
-- 647 Broadway Ave., Bedford
-- 19001 Euclid Ave., Euclid
"Our focus continues to be on organic store growth, but Medic offered us an opportunity to fill gaps in the Cleveland market," said Walgreens Chairman and CEO Dave Bernauer. "Medic has a reputation for strong service, and we'll continue providing that to their customers and pharmacy patients."
The transaction doesn't include Medic's home healthcare division, which Medic will continue to operate.
Currently, Walgreens operates 57 stores in the Cleveland market. In the last three years, the company has purchased the pharmacy inventory and patient files from three other Medic locations that closed. "Customers at those stores that transferred to Walgreens were happy with their experience, and we feel very comfortable that customers at these remaining stores also will be pleased with Walgreens service," said Thomas R. McWilliams, vice president of operations for Medic.
Walgreens plans to interview Medic employees for positions at all of its area stores, though the exact number that will be offered jobs isn't known at this time.
Walgreens will honor nearly all prescription insurance programs currently accepted by Medic. In addition, patients with Qualchoice insurance, which isn't accepted by Medic, can now use their insurance at Walgreens, including the eight former Medic locations, once the transaction is complete.
Walgreens will offer additional pharmacy services for Medic patients, including 24-hour service at seven Walgreens pharmacies located near Medic stores, plus 12 other 24-hour Walgreens in the market. With Medic pharmacy patients part of Walgreens Intercom Plus pharmacy computer system, they can have their prescriptions accessed and filled at any of the nearly 5,000 Walgreens nationwide.
Walgreens also offers pharmacy patients prescription information sheets in large type; prescription labels in 14 different languages; flavored medicines; automatic refills of medicine taken on an ongoing basis; and drive-thru pharmacy service.
Walgreen Co. is the nation's largest drugstore chain with fiscal 2005 sales of $42.2 billion. The company operates 4,962 stores in 45 states and Puerto Rico. Walgreens also provides additional services to pharmacy patients and prescription drug and medical plans through Walgreens Health Initiatives (a pharmacy benefits manager), Walgreens Mail Service, Walgreens Specialty Pharmacy and Walgreens Home Care.
