Drugstore chains Rite Aid Corp. (NYSE: RAD) and Longs Drug Stores Corp. (NYSE: LDG) said on Friday they had signed an agreement to exchange six Longs Drug Stores in Washington, Oregon, and Northern California, for six Rite Aid stores in Nevada.
Rite Aid will acquire stores in Yakima, Washougal and Mercer Island, Washington; Aloha and Tigard, Oregon; and Roseville, California. All will be operated as Rite Aid stores.
The deal will involve exchange of prescription files, fixed assets and inventory as well as to assume the leases for non-owned stores.
Rite Aid also will receive prescription files from six Longs stores in Washington, including two in the Seattle area and one each in Issaquah, Tacoma, Bellevue and Federal Way. The files will be transferred to nearby Rite Aid stores.
These are great stores that will build upon our presence in Washington, Oregon and California, and we look forward to welcoming their associates and customers to Rite Aid, said Mary Sammons, Rite Aid president and CEO.
Upon completion, this agreement will give Rite Aid 138 stores in Washington, 72 in Oregon and 599 in California. Rite Aid will continue to operate 29 stores in Nevada.
Longs had announced in February that it had planned to dispose of 31 stores by January of 2008. The six stores it traded are part of that plan. Longs now has a total of 24 stores in Nevada.