Walgreen finishes $438M deal for drugstore chain

Associated Press Modified: September 18, 2012 at 12:00 pm •  Published: September 18, 2012
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DEERFIELD, Ill. (AP) — Walgreen Co. has completed its $438 million purchase of a regional drugstore chain that operates in several states under the USA Drug, Super D Drug and Med-X names.

The Deerfield, Ill., company announced the deal in July and then said Monday afternoon that it closed. The deal involves the purchase of 144 stores in a chain focused on the mid-South from the privately held Stephen L. LaFrance Holdings Inc.

The stores are located in Arkansas, Kansas, Mississippi, Missouri, New Jersey, Oklahoma and Tennessee. Store names involved in the deal also include May's Drug and Drug Warehouse. The acquisition also includes cooperate offices, an Arkansas distribution center and a wholesale and private brand business.

The chain had $825 million in sales last year. Walgreen, the nation's largest drugstore operator, has said the deal will help it expand to smaller communities where USA Drug has developed operational expertise.

Walgreen runs 7,929 drugstores in all 50 states, the District of Columbia and Puerto Rico.