DEERFIELD, Ill., June 03, 2011 - Walgreen Co. (NYSE: WAG)(NASDAQ: WAG) today announced that it has completed its acquisition of drugstore.com. The transaction includes all websites directly owned and operated by drugstore.com, as well as its corporate office and customer service and distribution center operations.
The transaction, which represents a total enterprise value of approximately $409 million, follows Walgreens acquisition last year of New York-based drugstore chain Duane Reade. The addition of drugstore.com's strong online business across its health, personal care, beauty and vision categories better positions Walgreens as the most convenient multi-channel retailer of health and daily living needs in America.
“We welcome drugstore.com’s leaders and employees to the Walgreens family,” said Walgreens President and CEO Greg Wasson. "drugstore.com complements Walgreens center of gravity — our 7,700 drugstores ? by extending many of our own multi-channel initiatives that have been driving our growth. This acquisition also provides us a unique opportunity to access more than 3 million savvy, online loyal customers, and move even closer to our existing customers through relationships with new vendors and partners, adding approximately 60,000 products to our already strong online offering."
Walgreens President of E-commerce Sona Chawla will lead the combined e-commerce business. Dawn Lepore, former drugstore.com CEO and chairman, will continue through a transition period as a strategic advisor to Chawla.
"Today we are better positioned than ever before to offer our customers what they want, when they want it and where they want it? in our stores, online or through their mobile devices," said Chawla. "We want to provide our customers an exceptional experience, and together with drugstore.com, we will give them more ways to connect and buy, easy access to a wide selection of products and services and increased delivery options. We are committed to joining drugstore.com’s talented team with our strong and growing e-commerce organization."
drugstore.com will maintain separate branding of its websites. Over the long term, Walgreens will fully integrate the two businesses and intends to enhance its multi-channel product assortment and the overall customer experience by leveraging drugstore.com’s current websites.
About Walgreens
Walgreens (www.walgreens.com) is the nation's largest drugstore chain with fiscal 2010 sales of $67 billion. The company operates 7,689 drugstores in all 50 states, the District of Columbia and Puerto Rico. Each day, Walgreens provides nearly 6 million customers the most convenient, multi-channel access to consumer goods and services and trusted, cost-effective pharmacy, health and wellness services and advice in communities across America. Walgreens scope of pharmacy services includes retail, specialty, infusion, medical facility and mail service, along with respiratory services. These services improve health outcomes and lower costs for payers including employers, managed care organizations, health systems, pharmacy benefit managers and the public sector. Take Care Health Systems is a Walgreens subsidiary that is the largest and most comprehensive manager of worksite health centers and in-store convenient care clinics, with more than 700 locations throughout the country.
About drugstore.com
drugstore.com, inc. is a leading online retailer of health, beauty, clinical skincare, and vision products. The drugstore.com portfolio of brands includes: drugstore.com™, Beauty.com™, SkinStore.com™ and VisionDirect.com™. All provide a convenient, private and informative shopping experience, while offering a wide assortment of approximately 60,000 non-prescription products at competitive prices.
The drugstore.com pharmacy service, in association with BioScrip Pharmacy Services, Inc., is certified by the National Association of Boards of Pharmacy (NABP) as a Verified Internet Pharmacy Practice Site (VIPPS) and complies with federal and state laws and regulations in the United States.
Forward-Looking Statements
Information set forth in this press release contains forward-looking statements, which involve a number of risks and uncertainties. These statements include those regarding the potential effects of the acquisition. These statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that could cause actual results to vary materially from those indicated, including: the risk that the businesses will not be integrated successfully; the risk that the cost savings and any other synergies from the transaction may not be fully realized or may take longer to realize than expected; disruption from the transaction making it more difficult to maintain relationships with customers, employees or suppliers; competition and its effect on pricing, spending, third-party relationships and revenues; and other factors described in Walgreens Annual Report on Form 10-K for the year ended August 31, 2010, drugstore.com’s Annual Report on Form 10-K for the year ended January 2, 2011 and their respective subsequent SEC filings, which risks and uncertainties are incorporated herein by reference. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except to the extent required by law, Walgreens disclaims any obligation to update any forward-looking statements after the distribution of this press release, whether as a result of new information, future events, changes in assumptions, or otherwise.